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Mobile PC Incubation Presentation

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  1. 1. MoPC Biz Proposal Jagan Rao 6 th October 2008
  2. 2. Recap -3 A B C GM % % Market Fuzzy Frontend Product Spec Market Strategy Technology Technology Products Markets Adoption Segmentation Demograhics Psycho metrics Technology Product Market 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 0 1 2 3 -2 -1 need rel ship 40% 25% 35% idea Biz plan project Define Specification Understand Customer Define Customer
  3. 3. Opportunity Analysis
  4. 4. Low Cost PC - Comments <ul><li>Home PC market & Internet Penetration has been low </li></ul><ul><li>Dominated by MNCs because of Brand - Quality & Support </li></ul><ul><li>Innovation Or Cost : That is the Question! </li></ul><ul><li>Innovation Creates High Margins </li></ul><ul><ul><li>New Products & markets </li></ul></ul><ul><ul><li>Edge in existing markets </li></ul></ul><ul><li>Cost (and SP) Improve Margins and is a function of </li></ul><ul><ul><li>Sourcing cost, conversion cost, Inventory & distribution /support cost all of which are a function of Volume. </li></ul></ul><ul><ul><li>Innovation (& therefore R&D cost) almost does not figure in this at high volumes – no point in optimizing this! </li></ul></ul><ul><li>Market Parameters </li></ul><ul><ul><li>Target Market Segment : E.g. What was the target segment for the Simputer? </li></ul></ul><ul><ul><ul><li>User segment: Home? Enterprise? Rural? </li></ul></ul></ul><ul><ul><ul><li>Need segment – Entertainment? Biz? SOHO? </li></ul></ul></ul><ul><ul><li>Demand (latent/real/) : Is there a latent demand that will propel the biz? (e.g. Small Car and CTV in 80’s or Landlines in 90’s or Mobile in 00’)? </li></ul></ul>
  5. 5. What is being sold” Notebook vs Desktop sales Year Overall PC Market Size (In ‘000) <ul><li>Notebooks account for 13% PC market, up from 9% in 2005-06. </li></ul><ul><li>Notebook sales grew by 97%, while growth in Desktop sales was only 19%. </li></ul>Growth in 2006-07 over 2005-06 26% 97% 19% Overall PC Notebooks Desktop PC
  6. 6. Where is it being sold? Businesses vs. Households (Half Yearly Desktops) <ul><li>Business Sector accounted for 62% of the market; consumption decreased by 17% over H1/2006-07 </li></ul><ul><li>Consumption in the households increased by 72% compared to H1/2006-07, accounting for 38% of the sales </li></ul>Units
  7. 7. H1/2006-07 <ul><li>Unit sales of MNC brands improved by 33% </li></ul><ul><li>Indian brands registered a decline of 24%, while Assembled declined by 10% in absolute terms </li></ul>H1/2007-08 Who is is selling? Desktop market: Indian, MNC & Assembled
  8. 8. How to create demand (Volume)? <ul><li>We need to Look at </li></ul><ul><ul><li>Where are the big Needs? Today and after 2 years </li></ul></ul><ul><ul><li>Where are the big Volumes? Today and after 2 years </li></ul></ul><ul><li>What is the affordability? </li></ul><ul><ul><li>What is the cost point? </li></ul></ul><ul><ul><li>What is the biz model? </li></ul></ul><ul><li>Where is the customer </li></ul><ul><ul><li>Where are the big clusters? </li></ul></ul><ul><ul><li>How does one attract customer attention? </li></ul></ul>
  9. 9. Volume Analysis : Schools
  10. 10. Volume Analysis Enrollments in 2004 Source: Selected Educational Statistics, Ministry of HRD, N Delhi 9 Million Degree Students in 2004 696,609 B.E 1,465,028 BCom 256,748 1,490,785 3,772,216 122,257 198,719 469,291 55,352 MBBS BSc BA MCom MSC MA Ph.D
  11. 11. Growth Analysis
  12. 12. Is it a market to be in? <ul><li>TAM > 9M </li></ul><ul><li>SAM : 1M </li></ul><ul><li>Growth : 30% </li></ul><ul><li>Period : > 5 years </li></ul>
  13. 13. Generating the Product Spec (for today) <ul><li>What is needed in the Product </li></ul><ul><ul><li>Office & Windows </li></ul></ul><ul><ul><li>Run standard Windows/Linux Apps </li></ul></ul><ul><ul><li>Storage </li></ul></ul><ul><ul><li>CD/DVD Media </li></ul></ul><ul><ul><li>USB to transfer files </li></ul></ul><ul><li>How much will the customer pay? </li></ul><ul><ul><li>50% of tuition or transport fees? </li></ul></ul><ul><ul><li>2X cost of books? </li></ul></ul><ul><li>Likely Biz Models </li></ul><ul><ul><li>Retail </li></ul></ul><ul><ul><li>Rate contract </li></ul></ul>Available Today Need Who Provides <ul><li>Desktop </li></ul><ul><li>Laptop </li></ul><ul><li>WinMobile </li></ul><ul><li>10,000-50,000 </li></ul><ul><li>HP </li></ul><ul><li>Dell </li></ul><ul><li>Acer </li></ul><ul><li>Apple </li></ul><ul><li>HCL </li></ul><ul><li>iNTEX </li></ul><ul><li>Chirag </li></ul>
  14. 14. Possible Differentiators <ul><li>Cost </li></ul><ul><li>Size </li></ul><ul><li>Form factor & ID </li></ul><ul><li>Mobility </li></ul><ul><li>Power Options </li></ul>
  15. 15. Biz Proposal
  16. 16. Product Alternatives <ul><li>Cost reduced Laptop/ Desktop: </li></ul><ul><ul><li>Crowded market, no differentiation, not playing to strength </li></ul></ul><ul><li>PC centric Mobile Phone running WindowsMobile with Win32API Layer for XP compatibility </li></ul><ul><ul><li>Not feasible </li></ul></ul><ul><li>PC centric Mobile Phone running WindowsMobile or Linux with remote client capability </li></ul><ul><ul><li>Initial study shows feasibility: needs to be validated and optimized to create differentiation </li></ul></ul>
  17. 17. Jagan’s Ten Steps <ul><li>What have you identified as the Opportunity? </li></ul><ul><ul><li>All Students 9 th upwards will need a PC to learn from the Web, download tutorials, practice programming etc. </li></ul></ul><ul><ul><li>India market alone is projected at 1M users initially growing at 30% CAGR </li></ul></ul><ul><li>Who are the Stake Holders & Players? </li></ul><ul><ul><li>PC Mfr, Sales channels, Support channels </li></ul></ul><ul><ul><li>HP, Dell, Acer, HCL, Imtex … </li></ul></ul><ul><li>Who is your customer and what is the revenue flow? </li></ul><ul><ul><li>Students 9 th to Degree/PG </li></ul></ul><ul><ul><li>Student -> School/College -> Supplychaiin </li></ul></ul>
  18. 18. Jagan’s Ten Steps <ul><li>4. What is your product & differentiation value? </li></ul><ul><ul><li>Product: MoPC with Remote client </li></ul></ul><ul><ul><li>Differentiation :Cost, ID, Mobility </li></ul></ul><ul><li>5. How will your customer measure your value </li></ul><ul><ul><li>Ability to run PC ware : Windows Apps and Tools </li></ul></ul><ul><ul><li>Initial Cost and expandability for the future </li></ul></ul><ul><li>6. What is your Business architecture model? </li></ul><ul><ul><li>Sell Basic model at nominal profit </li></ul></ul><ul><ul><li>License margins off educational software </li></ul></ul><ul><li>What is your Goto Market Strategy </li></ul><ul><ul><li>Sell through book shops : along with books </li></ul></ul><ul><ul><li>Sell through institutions </li></ul></ul><ul><ul><li>Partner with a large brand </li></ul></ul>
  19. 19. Jagan’s Ten Steps <ul><li>Map a customer centric approach to expanding your product </li></ul><ul><ul><li>Accessories </li></ul></ul><ul><ul><li>Music, Gaming </li></ul></ul><ul><ul><li>New IDs </li></ul></ul><ul><li>How will you keep a running lead against other entrants? </li></ul><ul><ul><li>? </li></ul></ul><ul><li>10. What do you need to execute? </li></ul><ul><ul><li>Market Research </li></ul></ul><ul><ul><li>Access to Design house </li></ul></ul><ul><ul><li>$X for Field Prototype </li></ul></ul><ul><ul><li>$x launch </li></ul></ul><ul><ul><li>Access to Supply chain </li></ul></ul>
  20. 20. MoPC <ul><li>PC features on a palm sized mobile device </li></ul><ul><li>Community PC concept: Share your home / business PC </li></ul><ul><li>Connect to your home PC over the Internet using Remote PC Client </li></ul><ul><ul><li>Access all you PC appls and SW </li></ul></ul><ul><ul><li>Store sessions for future reference. </li></ul></ul><ul><li>Share the PC between several users if you wish </li></ul><ul><li>USB centric connectivity </li></ul><ul><ul><li>. Standard USB Memory stick to store additional data. </li></ul></ul><ul><ul><li>Connect a host of accessories including a variety of wireless modems to access your PC remotely on the move. </li></ul></ul>Study, Stay in touch, Enjoy your music, Play your favorite games with the MoPC!
  21. 21. MoPC Study, Stay in touch, Enjoy your music, Play your favorite games with the MoPC! <ul><li>Hardware </li></ul><ul><ul><li>OMAP 2420 Processor </li></ul></ul><ul><ul><li>4” LCD display </li></ul></ul><ul><ul><li>Full Qwerty Keyboard </li></ul></ul><ul><ul><li>6 Internal USB ports for SDD and other accessories </li></ul></ul><ul><ul><li>VGA interface </li></ul></ul><ul><ul><li>Ethernet interface </li></ul></ul><ul><ul><li>GSM/CDMA/Wifi add-on accessory </li></ul></ul><ul><ul><li>Camera add-on accessory </li></ul></ul><ul><ul><li>Accelerometer add-on accessory </li></ul></ul><ul><ul><li>FM radio with recording add-on accessory </li></ul></ul><ul><ul><li>Penlight NiMH batteries </li></ul></ul><ul><li>Software </li></ul><ul><ul><li>Windows Mobile or Unbunto Linux </li></ul></ul><ul><ul><li>Anuna Remote PC Client </li></ul></ul><ul><ul><li>Pocket Office tools </li></ul></ul><ul><ul><li>Media player/recorder </li></ul></ul><ul><li>Size & Weight </li></ul><ul><ul><li>110X70 MM </li></ul></ul><ul><ul><li>100 Oz </li></ul></ul>ID2 ID3 ID4
  22. 22. Product Overview <ul><li>MOPC </li></ul><ul><li>Customer : Students </li></ul><ul><li>USP </li></ul><ul><ul><li>PC Compatible </li></ul></ul><ul><ul><li>Community PC : Shared cost </li></ul></ul><ul><ul><li>Access to PC anywhere </li></ul></ul><ul><ul><li>All Mobile Features </li></ul></ul><ul><ul><li>Palm Sized </li></ul></ul><ul><ul><li>Runs of standard batteries </li></ul></ul><ul><ul><li>Various IDs </li></ul></ul><ul><li>Why we win: </li></ul><ul><li>Windows </li></ul><ul><li>Sub 5000/- </li></ul><ul><li>Mobile Version of NetPC </li></ul><ul><li>Sharing of PC and associated software </li></ul><ul><li>Service Bundles </li></ul>Competitor Models ASUS EEPC Intex Gold BA73411 <ul><li>Status: Shipping </li></ul><ul><li>Cost : Rs. 14000/- </li></ul><ul><li>Features: </li></ul><ul><li>Linux </li></ul>Avg. ’09 ASP Avg. ’09 CPU Avg. ’09 GM % ‘ 09 GM ($M) Launch date July 09 On-Time Differentiated GM$ CURRENT STATUS* Orig Plan Current View X X X X X Market Segments: Lifetime Units 10 Million $120 $80 $40 50% HTC P3400 <ul><li>Status : Shipping </li></ul><ul><li>Cost : Rs. 17,500/- </li></ul><ul><li>Features </li></ul><ul><li>Linux </li></ul><ul><li>Status : Shipping </li></ul><ul><li>Cost : Rs. 9000/- </li></ul><ul><li>Features </li></ul><ul><li>PocketPC </li></ul>Novatium Net PV <ul><li>Status : Shipping </li></ul><ul><li>Cost : Rs. 2999/- </li></ul><ul><li>Features </li></ul><ul><li>Thin client DUDM </li></ul><ul><li>All Apps on Server </li></ul><ul><li>Wifi/Ehternet </li></ul>
  23. 23. Roadmap (Device, Software, Accessory) Rs. 4999 H1-09 H2-09 H1-10 H2-10 $x $x $x $x $x $x
  24. 24. 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
  25. 25. Suggested Plan MRD/PD Concept Device On OMAP Evaluate/Field Trail for Remote PC Client Proof of concept Remote Client Fuzzy Front End Biz Case Execute Launch 5M 2M 6M Funding Contracts