Sample Study: Problem Statement: Contoso a software firm wants study the impact of a new regulation that will affect the Shipping Operators & Oil Companies; Contoso is evaluating the option for developing and launching a software product to address this market.

1. A2Z Shipping by Contoso
Strategy for addressing the ECA regulations
Problem Statement :
Contoso a software firm wants study the impact of a new regulation that will affect the
Shipping Operators & Oil Companies; Contoso is evaluating the option for developing and
launching a software product “A2Z Shipping” to address this market.

2. Introduction : what is the ECA
sulphur regulations ?
01
table of contents
Impact of ECA regulations on
shipping operators
02
Porter’s five forces :- Introducing
ECA regulations module/product
03
Executive Summery
04
Challenges Contoso might face
when introducing ECA module05
ECA Module feature set & GTM
06

3. 3
Given the current market conditions, taking a new ECA product to
market will be a challenge. The bigger challenge will be gaining a
sustained additional revenue from an independent product .
Contoso Software Solutions need to upgrade its A2Z shipping with
ECA modules, to keep the product relevant for its customers and to
maintain a competitive edge in the market.
Contoso Software Solutions need to start engaging with it customers
to chalk out as to how and when the module should be brought to
market.
Developing and brining such a module to market on a priority basis
for the cloud subscription customers, will help make a strong case
towards the benefits of upgrading from an on-prem solution to a
cloud solution.
Executive Summery
section 01
In the near term it is unclear as
to how the operators and the
market might respond to the
new ECA regulations. There are
possibilities of operators risking
non compliance for the sake of
maintaining competitive edge,
or they might adopt other
compliance options such as
scrubbers and LNG.
In the long run operators will
prefer to have multiple
compliance options to gain
flexibility

4. 4
What is the ECA Sulphur regulations ?
Owners and operators have to plan and manage their ECA fuel needs.
From January 1, 2015, all vessels sailing in the designated ECA zones in the Baltic Sea, the North Sea, the waters off the U.S. and
Canadian coastline and the U.S. Caribbean Sea will be required to use fuel with a maximum Sulphur content of just 0.1%, a
significant reduction from the current ECA limit of 1%
With the deadline , owners & operators are facing real
challenges
• Uncertainty on both fuel supply and demand
• neither scrubbers, nor alternative fuels such as LNG
can be an immediate solution
• significant price premium
• Controlling the operating costs to keep fuel bills to a
minimum
Introduction
How can Contoso Software Solutions ’s A2Z
shipping solution help operators address these
challenges ?
section 02

5. 5
Impact of ECA regulations on shipping companies
Oil Oil Oil
risk of non-
compliance
price fluctuations right time
insufficient fuel
stocks
There is no guarantee
that all suppliers will be
able to supply the
compliant products
There is real concern
among operators
about the availability
of sufficient fuel stocks
With the uncertainty
in supply there is
bound to be price
fluctuations
There is no guarantee
that all suppliers will
be able to supply in
the right place, and at
the right time
section 03

6. 6Source: Placeholder example
Porter’s five forces for introducing ECA regulations module/product
section 04
Due to low
enforcing
penalties,
operators might
risk non
compliances for
the sake of
maintain a
competitive edge
Though competition for
Contoso is low , if a
competitor brings a solution
to market before Contoso
they will gain an edge.
As the ECA enforcement is
time bound the operator will
seek be open to a quick
solution to avoid non-
compliance & escalating
operating costs
The access to accurate real
time information on
availability of compliant fuel
& price will be critical
In the long run, operators
might look to other
compliance options such as
scrubbers or alternative
fuels (LNG)
The Threat of new entry
is low since the market
is niche
Threat of new entry
Competitive rivalry
Buyer power
Threat of substitution Supplier power
High impact
Medium impact
Low impact

7. 7Source: Placeholder example
Challenges Contoso might face when introducing ECA module
Time to market
Uncertain market
conditions
Operators might
adopt an alternate
compliance strategy
Monetization
With the ECA enforcement
coming into effect from
January 2015, the
operators will be keen to
plan ahead and manage
their fuel needs; hence
Contoso Software Solutions
needs to start engaging with
its customers now and
work to bring a product to
market within this short
span of time
Given the uncertain impact
on both fuel supply and
demand, the implications of
the low sulphur rule, on fuel
availability are unclear
The following factors may
push the operators to
consider alternatives such
as scrubbers or LNG
-the availability of sufficient
fuel stocks
-the financial impact
resulting from the
requirement to buy more
costly distillate fuel
-affect on the profitability
Contoso Software Solutions
's existing customers (cloud
subscribers ) might not be
ready to pay the extra for
the new features.
on-prem customer will be
ready to pay for a new
project towards the
implementation of the new
module.
In the long run for any new
sale the ECA module will
become an integral part of
A2Z shipping's existing
feature set bundle, hence
there might be no sustained
additional revenue
section 5

8. 8
Go To Market approaches for the ECA Module
Identify a few key existing on-prem customers
who are planning to address this need and build
a solution around them
Develop the module for A2Z shipping cloud
solution and make it available to the cloud
subscribers at premium price
On-prem 1st Cloud 1st1 2
• Contoso Software Solutions will sell it to the
existing customers
• Contoso Software Solutions can recover the
cost towards development upfront
• In the long run for any new sale the ECA
module will become an integral part of A2Z
shipping's existing feature set bundle, hence
there might be no sustained additional
revenue
• Continues sustained revenue opportunity
• Can be a differentiator to bring a new
customer on-board the subscription solution
• Recovering the cost of development will take
a longer time
section 6

9. Karthik
st.karthik@outlook.comthank you