Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

A2Z Shipping by Contoso

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.

  • Login to see the comments

  • Be the first to like this

A2Z Shipping by Contoso

  1. 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. 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. 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. 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. 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. 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. 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. 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. 9. Karthik st.karthik@outlook.comthank you

×