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IT Exchange B2B Portal


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E Biz strategy for IT exchange B2B Portal

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IT Exchange B2B Portal

  1. 1. B2B IT Exchange Portal <ul><ul><li>By - </li></ul></ul><ul><ul><li>Sachin Vyas </li></ul></ul>
  2. 2. Agenda <ul><li>Introduction </li></ul><ul><li>Target market </li></ul><ul><li>Vision, mission, objective </li></ul><ul><li>Profile of Target Market </li></ul><ul><li>SWOT/Competitive analysis </li></ul><ul><li>Product and service description </li></ul><ul><li>Delivery mechanism of service </li></ul><ul><li>Strategies </li></ul><ul><ul><li>Execution strategy </li></ul></ul><ul><ul><ul><li>Implementation plan </li></ul></ul></ul><ul><ul><ul><li>Application roll out plan </li></ul></ul></ul><ul><ul><li>Market entry strategy </li></ul></ul><ul><ul><ul><li>Distribution strategy </li></ul></ul></ul><ul><ul><ul><li>Pricing strategy </li></ul></ul></ul><ul><ul><li>Business continuity strategy </li></ul></ul><ul><li>Cost model </li></ul><ul><li>Revenue Model </li></ul><ul><li>Sales projections/Cash flow </li></ul><ul><li>Business Partner </li></ul><ul><li>Team </li></ul><ul><li>Challenges </li></ul><ul><li>Critical success factor </li></ul><ul><li>Future scope </li></ul>
  3. 3. Introduction <ul><li>Value proposition: Facilitating SME’s in IT sector for bidding for contracts in a transparent manner. </li></ul><ul><li>Idea : SME’s with potential to deliver good quality of product and services lack exposure and opportunities to demonstrate their potential. </li></ul>
  4. 4. Target market <ul><li>All SME’s in IT/ITES sector </li></ul><ul><li>Project owners </li></ul><ul><li>Investors – VC’s </li></ul>
  5. 5. Vision, Mission, Objective <ul><li>Vision : To become most preferred IT exchange portal in India. </li></ul><ul><li>Mission : </li></ul><ul><ul><li>To ease all SME’s to find business opportunity in IT sector </li></ul></ul><ul><ul><li>To enable Project owner to find right business partner </li></ul></ul><ul><ul><li>To empower Indian IT companies to emerge as big enterprises. </li></ul></ul><ul><li>Objectives: To grow by 15% every year. </li></ul>
  6. 6. Profile of Target Market <ul><li>SME definition: A Typical Indian Software SME would have Turnover <1000.million INR ; Staff Strength < 500. </li></ul><ul><li>IT Industry contribution to GDP: 5.4 % </li></ul><ul><li>India’s IT export and its contribution to GDP has increased over the past years but SMEs’ share in the entire IT export in India is only 30 percent. </li></ul><ul><li>Over 80% of IT companies in India are SME. </li></ul>
  7. 7. SME segment analysis <ul><li>Characteristics </li></ul><ul><ul><li>Thriving on single contract or client. </li></ul></ul><ul><ul><li>Desire to go global, but lack the vision or/ and adequate exposure. </li></ul></ul><ul><ul><li>Missing entrepreneurial mindset. </li></ul></ul><ul><li>Looming problems in SME </li></ul><ul><ul><li>Lack of financial patronage </li></ul></ul><ul><ul><li>Lack of Market Intelligence </li></ul></ul><ul><ul><li>Limitations to get client /prospective partner </li></ul></ul>
  8. 8. SWOT Analysis <ul><li>Opportunities </li></ul><ul><ul><li>Indian IT sector is growing at 20% every year </li></ul></ul><ul><ul><li>Over 80% of IT companies in India are SME’s </li></ul></ul><ul><ul><li>There are lot of IT opportunities in government sector </li></ul></ul><ul><li>Strength </li></ul><ul><ul><li>First mover advantage </li></ul></ul><ul><ul><li>In-depth understanding of IT business process and e-governance </li></ul></ul><ul><ul><li>Solution accelerate bidding process and search time to find right business partner </li></ul></ul><ul><li>Weakness </li></ul><ul><ul><li>Project owner may find it difficult to trust unknown vendors </li></ul></ul><ul><ul><li>Government spending on IT projects is very less </li></ul></ul><ul><ul><li>Companies may hesitate to share their projects details in public forum </li></ul></ul><ul><li>Threats </li></ul><ul><ul><li>Price wars among service providers </li></ul></ul><ul><ul><li>Emerging low cost nations like china </li></ul></ul><ul><ul><li>In economic downturn revenue earned by “Transaction fees” may get affected. </li></ul></ul>
  9. 9. Product/Service description <ul><li>Services offered: </li></ul><ul><ul><li>Core business service: Profile management </li></ul></ul><ul><ul><li>Bidding service </li></ul></ul><ul><ul><li>Contract Management </li></ul></ul><ul><ul><li>Advertisements </li></ul></ul><ul><li>Key features </li></ul><ul><ul><li>Customizable search for service provider </li></ul></ul><ul><ul><li>Industry news and updates </li></ul></ul><ul><ul><li>Ability to customize your preferred vendors so that RFQ’s are notified to preferred vendors </li></ul></ul>
  10. 10. Delivery mechanism
  11. 11. Strategies – Execution strategy <ul><li>Implementation road map </li></ul><ul><ul><li>Current position: We have completed POC. We are all set to start the development of B2B IT Exchange portal. </li></ul></ul><ul><ul><li>In house development based on RUP methodology. </li></ul></ul><ul><ul><li>Implementation estimates: </li></ul></ul><ul><ul><ul><li>Analysis and Design: Estimated effort : 4 man month </li></ul></ul></ul><ul><ul><ul><li>Implementation: Estimated Effort : 12 man months </li></ul></ul></ul><ul><ul><ul><li>Testing: Estimated Effort : 6 man months </li></ul></ul></ul><ul><ul><li>Support strategy: </li></ul></ul><ul><ul><ul><li>Free/Full 24*7 supports for during licence period. </li></ul></ul></ul><ul><ul><ul><li>Our web portal will have section for corporate user to log complain for any issue with service quality. </li></ul></ul></ul><ul><li>Application rollout plan </li></ul>
  12. 12. Strategies – Market entry strategy <ul><li>Distribution strategy : How to reach customers? </li></ul><ul><ul><li>Advertisements </li></ul></ul><ul><ul><li>Conducting seminars </li></ul></ul><ul><ul><li>Enrolling in various B2B online e-market place like Trade India, India MART, INDWEB, </li></ul></ul><ul><li>Pricing strategy: High value and medium price </li></ul><ul><li>Initial pricing offers: </li></ul><ul><ul><li>Profile management service+ 3 months of Bidding service free. </li></ul></ul><ul><ul><li>During trial period of Bidding service transaction fees would be 0.2% instead of 0.5%. </li></ul></ul><ul><ul><li>Profile management service+ 50% discount on Advertisement fees. </li></ul></ul>
  13. 13. Strategies – Business continuity strategy <ul><li>Our internal cash flow will fund all future growth </li></ul><ul><li>Up gradation of service offerings frequently based on customer requirement and global economic position of IT industry. </li></ul><ul><li>Initial IT investment will be 40-50% of total cost but in subsequent year it will come down to 25-35%. </li></ul><ul><li>Cost will reduce by 30-40% in second year and our internal cash flow will fund our all future growth. </li></ul>
  14. 14. Cost Model               1200000 100000 Marketing and Advertisement expenses       900000 75000 Miscellaneous Cost       1200000 100000 Rent of Office     5748000 2448000 204000 Resource Cost Variable Cost 2011               1000000   Contingency Buffer       2375000   Infrastructure Cost             Fixed cost     1200000 100000 Marketing and Advertisement expenses       1200000 100000 Miscellaneous Cost       1200000 100000 Rent of Office     10011000 3036000 253000 Resource Cost Variable Cost 2010             Total Cost (INR) Annual Cost (INR) Cost per Month (INR) Cost Component   Year            
  15. 15. Revenue Model <ul><li>Subscription fees - Differential pricing </li></ul><ul><ul><li>SP1 - Profile management service , Mandatory service Rs. 9999 per license valid for 2 years. </li></ul></ul><ul><ul><li>SP2 - Profile management service + Bidding services Rs. 5000 additional to fees for SP1.i.e Rs. 14999. </li></ul></ul><ul><ul><li>SP3 – Contract management : Optional, Rs. 3000 additional to price for SP1 and SP2 . </li></ul></ul><ul><li>Transaction fees – Variable pricing </li></ul><ul><ul><li>Project bidding transaction fees.0.5% of project cost. </li></ul></ul><ul><ul><li>70% of transaction fees to be borne by Service provider and 30 % of transaction fees to be borne by project owner. </li></ul></ul><ul><li>Advertisement fees - Fixed price </li></ul><ul><ul><li>Additional to Subscription fees </li></ul></ul><ul><ul><li>Applicable to Project owner/Service provider. </li></ul></ul>
  16. 16. Sales projections
  17. 17. Business Partner <ul><ul><li>NASCOMM: NASSCOMM is also working for the same goal, of promoting SME’s IT companies. </li></ul></ul><ul><ul><ul><li>Creating SME oriented CIO forum from developed markets to facilitate B2B interactions. </li></ul></ul></ul><ul><ul><ul><li>To promote the SME participation by pitching at the policy level for Government contracts </li></ul></ul></ul><ul><ul><ul><li>Initiating mentoring programs in association with large companies. </li></ul></ul></ul><ul><li>SIDBI : Small Industries Development Bank of India - only large size dedicated organization for the promotion of Small Scale Industries and Medium Enterprises. </li></ul><ul><li>NFSIT : National Venture Capital Fund for Software and IT industry has been set up by SIDBI and is being managed by SIDBI Venture Capital Ltd. </li></ul>
  18. 18. Team <ul><li>Product Development team </li></ul><ul><ul><li>6 web developer </li></ul></ul><ul><ul><li>4 testers </li></ul></ul><ul><ul><li>1 business analyst </li></ul></ul><ul><ul><li>1 marketing manager </li></ul></ul><ul><ul><li>1 project manager </li></ul></ul><ul><ul><li>4 sales executive </li></ul></ul><ul><li>Management team </li></ul><ul><ul><li>CEO : Sachin Vyas </li></ul></ul><ul><ul><li>CFO: Hitesh Lad </li></ul></ul><ul><ul><li>CMO : Cheerag Marfatia </li></ul></ul><ul><ul><li>CIO: Sarika Khamkar </li></ul></ul>
  19. 19. Challenges and Critical success factor <ul><li>Challenges </li></ul><ul><ul><li>Security and confidentiality of data </li></ul></ul><ul><ul><li>Trust </li></ul></ul><ul><ul><li>Resilience </li></ul></ul><ul><ul><li>Quality of service </li></ul></ul><ul><li>Critical success factor </li></ul><ul><ul><li>Right owners </li></ul></ul><ul><ul><li>Right governance </li></ul></ul><ul><ul><li>Full range of services </li></ul></ul>
  20. 20. Future Scope <ul><li>Exploring opportunity in International market </li></ul><ul><li>To emerge as business consultant in contract managements. </li></ul>
  21. 21. Thank you