Standardisation of ilr format and ilr for isv in usa


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Standardisation of ilr format and ilr for isv in usa

  3. 3. - 3 - ACKNOWLEDGEMENT I am glad to introduce my project titled Industry Level Report for Independent Software Vendors in USA for my MBA (Marketing) course. I take this opportunity to express my sincere thanks and gratitude to MR. ABHIJEET GANGOLI and MR. MILIND KATTI, the Executive Directors of QED Enabled Services Private Limited for giving me this opportunity to work in this project and guiding me through this project duration. I would also like to thank my company project guide MR. SANTOSH ABRAHAM, Manager Research Cell QED Enabled Services for helping me in collecting and compiling data and preparing the report. I would also like to thank Mr. Dilip Nath who has helped me a lot during this project work. This project could not have been completed without the guidance of our Director DR. SHARAD JOSHI and my project guide PROF. MAHESH HALALE. Last, but not the least to our family members who were always supportive. Thank you!!! Ninad D. Morankar
  4. 4. - 4 - INDEX
  7. 7. - 7 - EXECUTIVE SUMMARY According to reports, Indian software industry s turnover is around US$ 10 billion by the end of FY 2005. The IT Export figures are US$ 23 billion which is 1/6th of the total exports by India! According to leading reports, the projected demand for trained I.T. professionals is estimated at over 400,000 per year. There is a clear imbalance between the demand and supply of IT professionals with the result that this sector offers one of the highest remuneration packages. With the Internet rapidly changing the way we live, shop, entertain and work there is a tremendous scope for entrepreneurs with radical new in this field. The above paragraph clearly indicates the rapid growth in the information technology sector in India. As we know India is a outsourcing hub for the leading software companies in third world countries like USA and UK. IBM Executive mentions Transforming your business to operate at this constant high level of efficiency can be an enormous challenge. In conjunction with this new efficiency requirement, there are two important things that you need to consider regarding your company's information technology (IT) infrastructure. First, how well is your IT infrastructure and second, how can you transform your overall IT function itself? This led me towards the study of the Information Technology Industry. Lead Generation is a part of Pre-sales process of any marketing company. I approached QED Enabled Services which is a leader in lead generation and technology marketing services. These days the activities are getting outsourced. QED is a small scale and fast growing company in this field. I chose QED as I was aware that I can learn more in a smaller organisation than a big organisation. QED Baton is a brand name of QED Enabled Services. Research department is one of the departments in QED Baton which is branded by the name GrapeVine. The research cell in QED Baton was started just a year back i.e. in late FY 2004. The presales department of a company needs to have the data about the prospect customer i.e. a lead. This data can be generated by generating Company Level (CLR) and Database Level Reports (DLR). The CLR and DLR generation was a regular practice for QED. But for long term planning of an organisation, the organisation needs to have information about the market or industry it operates into or
  8. 8. - 8 - intends to operate into. This created a need for generation of Industry Level Reports (ILR). ILR is something which helps the companies in understanding the industry as a whole; the current scenario, industry leaders, latest trends, the future, SWOT analysis and what not! So, ILR is a much specialised kind of report for the organisation (i.e. client of QED Baton). Here the competition faced is also very tough which includes companies like Gartner. Being a new field for QED, there was a need to have Standard format for generation of ILRs. The standard format would make it easier to generate ILR for any industry. The ILRs will be offered to the present clients of QED as a token of appreciation for being their clients. These ILRs will also be used by QED as an effective marketing tool to attract new clients! So I chose this STANDARDISING THE FORMAT FOR ILR AND ILR FOR INDEPENDENT SOFTWARE VENDORS IN USA as my project. I worked on this project for three months from June to August. There I also learnt generation of CLRs for continual requirement of IT companies. This report generation is mostly secondary data collection on web by using company websites of companies, news agencies and etc; search engines and web crawlers. As a result of this effort I came up with a standard format for ILR and prepared an ILR on Independent Software Vendors (ISV) industry as asked by a client.
  10. 10. - 10 - OBJECTIVES OF THE PROJECT 1. Standardise the format of ILR. 2. Keeping the flexibility in ILR to change with respect to Client s requirements and also benchmark the same with respect to industry standards. 3. Generation of an ILR for Independent Software Vendors in USA.
  11. 11. - 11 - COMPANY PROFILE
  12. 12. - 12 - COMPANY PROFILE QED Baton 6, Shreenivas Classic, Baner Road Pune: 411045 Tel: 91-20-27290196 Fax: 91-20-25899915 A part of QED Enabled Services Private Ltd., QED Baton provides specialized technology marketing services, the effective B2B Lead Generation for Software Product and Services Companies. This SBU was effected in the year 2003 and since then, has worked with a number of software product as well as services companies helping them penetrate new markets across the geographies of US, UK, Europe, APAC, Middle East and Australia. Realizing sales is literally a function of who understands the customer best and who reaches the customer first. Through effective lead generation and sales optimization services focused on Technology marketing, QED baton helps its clients, by running the initial leg of the race and passing on the winning baton At Baton, they deliver qualified leads to their clients using an optimum blend of various direct marketing tools, ranging from email marketing, Cold calling and comprehensive research. QED Baton provides Custom-tailored demand generation services to the IT industry catering to Software product as well as Software Services companies. With their delivery centre based out of India, they provide clients a value proposition which the clients simply cannot ignore.
  14. 14. - 14 - SERVICES OFFERED Lead Generation Effective lead generation in the IT space extends beyond regular cold calling into qualifying the business opportunity. In fact, in the Technology Marketing space, every call needs to be preceded by researching the company, and every call is customized so as to identify and address the potential pain points while prospecting. Needless to say, this means that the executives working on client s account would be well versed with the services/products client have to offer, and also the industry specific characteristics so as use a consultative sales approach rather than mass cold calling. The Baton team works very closely with client s Business Development team in its lead generation initiative, So as to become an extension of client s workforce. It is literally like having client s own extended sales team working fulltime from a remote location. Leveraging the capabilities and experience they have in the inside sales field, along with the high level training that client would provide the team with, The Baton team would strive to provide client with as many face to face/ telephonic/ webex appointments as possible. Client would soon see why it makes complete business sense to have QED Baton as its lead generation partner! Using effective methods based on market intelligence, QED Baton helps in ensuring a healthy sales pipeline and faster time to market, thus ensuring Sales Force scalability Reduced Sales Cycle Cost Effectiveness Healthy sales pipeline Exponential increase in market reach
  15. 15. - 15 - Direct Marketing Direct Marketing is fast emerging as one of the most effective platforms for lead generation and relationship marketing among organizations across industries, Baton, helps client s organization in Identifying databases of companies falling in client s Target Audience zone. Executing personalized/ customised mass mailing campaigns. Conducting a tele-follow up exercise to increase the effectiveness of the campaign. As a part of the Direct Marketing execution services, Baton takes on complete ownership of the execution in terms of Conceptualization of communication plan Mailer design and production Prospect list building Mailer Fulfillment E mail campaigns are fast emerging as an effective Direct Marketing medium. Baton also provides Mass /Bulk mailing services. What client gets at the end of this exercise is A validated and well profiled database of prospects for present and future reference. A healthy lead pipeline A fool proof marketing effort of reaching out and hitting a well profiled target audience, thereby increasing client s market awareness.
  16. 16. - 16 - Event Enrollment Seminars/ exhibitions / events are fast becoming effective tools in the Go To Market strategy of most IT companies. Baton assists its clients in reaching out and inviting the identified target audience for seminars/ conferences. Thus strengthening Software marketing initiative. Even with the best theme, the best speakers, and the ideal location, a seminar could be ineffective unless an appropriate list of prospective attendees is available. A task far more challenging than what it simply seems at the face of it. Baton would take on the responsibility of : Identifying the right target audience for client Contacting the right profile of people within these organizations Getting them to register for the event. Post event follow up Consulting With years of experience in setting up lead generation cells for clients, Baton has identified a number of key factors that help towards setting up a successful lead generation cell. These would range from Identifying the right profile of people for the function Setting up processes for the execution of the lead generation cell Training and knowledge transfer methodologies Reporting structures and many more .. Clients can avail of Baton s services if they wish to set up an in house lead generation cell, where Baton would help them establish the processes and monitor the same till such time that the function becomes self sustained.
  17. 17. - 17 - Research Services Effective technology marketing is heavily dependant on adopting a Consultative Selling approach. The success of any marketing effort depends on multiple parameters; Are we targeting the right market? Do we have the intelligence to address the key pain points experienced by the market? Is our value proposition customer centric? Are we equipped enough to tackle our competitors? Intelligence of this nature are the key influencers in the strategic as well as tactical decision making processes vis-à-vis the Go to market strategy for any technology company. Companies invest a huge amount in sourcing research reports to augment their sales strategies, product development strategies and positioning strategies. QED Baton provides extremely high quality research services to cater to the Market Intelligence needs of their clients. Their specialized technology research cell The Grape Vine helps clients to Identify and define markets Map and profile these markets Map competition Map potential prospects so a customized sales pitch can be developed to break into these critical accounts Armed with a strong team of Research Analysts, Grape Vine uses multiple tools and methodologies to collate rich information that may not be available readily. Using a blend of web researching tools and social engineering Grape Vine has been successfully delivering value to its clients, both independently as well as by complimenting the lead generation team.
  18. 18. - 18 - Company Level Research: An effective pitch leads to an effective sale. Client s sale s pitch is always customized to address Client s prospect s need or potential business problem. It is imperative to identify this potential by fully understanding client s prospect and by being prepared with the relevant intelligence. Baton s Company Reports can give a 360 degree view of client s prospect by providing accurate and up to date stats like: Size Verticals (Area of Business) Products Right Party Contacts and Email Addresses Company Financials IT Landscape and Technology Stack Business Drivers Existing IT Vendors Pain Points Existing IT initiatives Strategic Business Objectives
  19. 19. - 19 - Industry Level Research: Important strategic decisions are based on various factors but the perception of the market is always influential. The Grape Vine would be able to generate comprehensive Industry Reports that would highlight the dynamics and momentum of the market, which would then be instrumental in planning Client s next move. This would also ensure that client retains a competitive edge. The reports would typically cover: Trends in the Industry Business and Technology Challenges Existing Players Positioning of different players Opportunities for more/new/experienced players Future Drivers and growth patterns Pain Points
  20. 20. - 20 - Database Level Research (Database Building): Power up campaigns with comprehensive and efficient lists, extracted straight from The Grape Vine. With access to some of the largest web directories and research tools, Grape Vine provides up-to-date lists and databases, keeping the Client s requirements and specifications in mind. QED Baton would also supplement this with surveys and calls to map organizations and hence, strengthen the lists. Grape vine also offers data cleansing services where they ensure that the information on client s existing lists are accurate and up-to-date.
  21. 21. - 21 - COMPETITOR ANALYSIS FOR QED BATON S RESEARCH SERVICES 1. Better Marketing Better Marketing services are a lead generation company. They work very closely with their customers to provide a robust and disciplined market development team for delivering on their specific lead generation objectives. Active Contacts business unit aims to fulfill this need with a suite of vertical business contact databases targeted at the needs of specific companies that aim to sell to specific types of decision makers. An ActiveContact database have deep rooted contacts at director, manager and architect levels and truly delivers a lead database that sales and marketing teams can benefit from. 2. Feedback Consulting Company Services Offering Value proposition Customer need addressed Market Feedback Assessing opportunities Research based consulting for business to business markets in India and select countries Customer Feedback Beyond Satisfaction measurement Stakeholder (Customer, Channel, Employee, Vendor) 'satisfaction' assessment through face to face interviews / web administration in India and other countries Implement Feedback Client s India office Roll out of desired initiatives in the Indian market, including build operate and transfer models. Field Feedback Feet on the ground Global firms wanting data collection to be done in India Global Feedback Harnessing information for business Global firms considering India as an outsourcing base for internet analysis on markets and competitive intelligence. Feedback 365 Client s partner 24 X 7 Extension arm of the customer in research based consulting services
  22. 22. - 22 - 3. IDC IDC is the world's leading provider of technology intelligence, industry analysis and market data to builders, providers and users of IT. It is the industry's most comprehensive resource on worldwide IT markets, trends, products, vendors, and geographies. IDC delivers dependable, high-impact insights and advice on the future of e-business, the Internet and technology to help its clients make sound business decisions. IDC is a subsidiary of IDG, the world's leading Technology, Media, Research, and Event Management company. IDC provides global research with a local flavour through more than 700 analysts in over 50 offices across 43 countries. IDC's customers comprise the world's leading IT suppliers, IT organizations, e-business companies, and the financial community. Business executives and IT managers have relied on IDC's advice for more than 40 years, to make decisions that contribute to the success of their organizations. 4. Market Insight Consultants Market Insight Consultants, is a fully integrated research and consulting firm with the capability to handle the entire gamut of research and consulting services such as : Problem definition and development of association framework Survey Designing Primary Field research with documented briefing / de briefing Secondary Data research Internet research Data Collection by observation studies Data Analysis Inference Derivation Option Assessment Strategy Development Implementation Planning Training
  23. 23. - 23 - Market Insight Consultants offers tailor made and high quality services aimed at improving market place performance of its Indian clients and facilitation of entry into India for its foreign clients. 5. Opinion & Market Research Company Data collection and processing are done in-house. In-house experts who have access to various software packages provide statistical analysis. Beyond QED Baton s own offices, regional alliances with other professional research agencies in every major City enables quick turnaround of Client s studies. This network gives client s local teams in as many as 30 centers across India . SWOT ANALYSIS FOR GRAPEVINE Strengths Extensive Target Market Reach (US,Uk,Europe,Australia) Well Qualified Team of Research Analysts Provides clients with customized Research according to the requirements with respect to the various criteria s viz. Territory, Market etc. Weakness Improper format for Company Level Research Reports Threats Bigger & Experienced Players in the Market Opportunities A growing need for Research Services
  25. 25. - 25 - THEORETICAL BACKGROUND OF MARKET RESEARCH THE MARKET RESEARCH PROCESS Once the need for marketing research has been established, most marketing research projects involve these steps: Define the problem Determine research design Identify data types and sources Design data collection forms and questionnaires Determine sample plan and size Collect the data Analyze and interpret the data Prepare the research report Problem Definition The decision problem faced by management must be translated into a market research problem in the form of questions that define the information that is required to make the decision and how this information can be obtained. Thus, the decision problem is translated into a research problem. For example, a decision problem may be whether to launch a new product. The corresponding research problem might be to assess whether the market would accept the new product. The objective of the research should be defined clearly. To ensure that the true decision problem is addressed, it is useful for the researcher to outline possible scenarios of the research results and then for the decision maker to formulate plans of action under each scenario. The use of such scenarios can ensure that the purpose of the research is agreed upon before it commences.
  26. 26. - 26 - Research Design Marketing research can classified in one of three categories: Exploratory research Descriptive research Causal research These classifications are made according to the objective of the research. In some cases the research will fall into one of these categories, but in other cases different phases of the same research project will fall into different categories. Exploratory research has the goal of formulating problems more precisely, clarifying concepts, gathering explanations, gaining insight, eliminating impractical ideas, and forming hypotheses. Exploratory research can be performed using a literature search, surveying certain people about their experiences, focus groups, and case studies. When surveying people, exploratory research studies would not try to acquire a representative sample, but rather, seek to interview those who are knowledgeable and who might be able to provide insight concerning the relationship among variables. Case studies can include contrasting situations or benchmarking against an organization known for its excellence. Exploratory research may develop hypotheses, but it does not seek to test them. Exploratory research is characterized by its flexibility. Descriptive research is more rigid than exploratory research and seeks to describe users of a product, determine the proportion of the population that uses a product, or predict future demand for a product. As opposed to exploratory research, descriptive research should define questions, people surveyed, and the method of analysis prior to beginning data collection. In other words, the who, what, where, when, why, and how aspects of the research should be defined. Such preparation allows one the opportunity to make any required changes before the costly process of data collection has begun. There are two basic types of descriptive research: longitudinal studies and cross-sectional studies. Longitudinal studies are time series analyses that make
  27. 27. - 27 - repeated measurements of the same individuals, thus allowing one to monitor behavior such as brand-switching. However, longitudinal studies are not necessarily representative since many people may refuse to participate because of the commitment required. Cross-sectional studies sample the population to make measurements at a specific point in time. A special type of cross-sectional analysis is a cohort analysis, which tracks an aggregate of individuals who experience the same event within the same time interval over time. Cohort analyses are useful for long- term forecasting of product demand. Causal research seeks to find cause and effect relationships between variables. It accomplishes this goal through laboratory and field experiments. Data Types and Sources Secondary Data: Before going through the time and expense of collecting primary data, one should check for secondary data that previously may have been collected for other purposes but that can be used in the immediate study. Secondary data may be internal to the firm, such as sales invoices and warranty cards, or may be external to the firm such as published data or commercially available data. The government census is a valuable source of secondary data. Secondary data has the advantage of saving time and reducing data gathering costs. The disadvantages are that the data may not fit the problem perfectly and that the accuracy may be more difficult to verify for secondary data than for primary data. Some secondary data is republished by organizations other than the original source. Because errors can occur and important explanations may be missing in republished data, one should obtain secondary data directly from its source. One also should consider who the source is and whether the results may be biased.
  28. 28. - 28 - There are several criteria that one should use to evaluate secondary data. Whether the data is useful in the research study. How current the data is and whether it applies to time period of interest. Errors and accuracy - whether the data is dependable and can be verified. Presence of bias in the data. Specifications and methodologies used, including data collection method, response rate, quality and analysis of the data, sample size and sampling technique, and questionnaire design. Objective of the original data collection. Nature of the data, including definition of variables, units of measure, categories used, and relationships examined. Primary Data: Often, secondary data must be supplemented by primary data originated specifically for the study at hand. Some common types of primary data are: Demographic and socioeconomic characteristics Psychological and lifestyle characteristics Attitudes and opinions Awareness and knowledge - for example, brand awareness Intentions - for example, purchase intentions. While useful, intentions are not a reliable indication of actual future behavior. Motivation - a person's motives are more stable than his/her behavior, so motive is a better predictor of future behavior than is past behavior. Behavior Primary data can be obtained by communication or by observation. Communication involves questioning respondents either verbally or in writing. This method is versatile, since one needs only to ask for the information; however, the response may not be accurate. Communication usually is quicker and cheaper than observation. Observation involves the recording of actions and is performed by either
  29. 29. - 29 - a person or some mechanical or electronic device. Observation is less versatile than communication since some attributes of a person may not be readily observable, such as attitudes, awareness, knowledge, intentions, and motivation. Observation also might take longer since observers may have to wait for appropriate events to occur, though observation using scanner data might be quicker and more cost effective. Observation typically is more accurate than communication. Personal interviews have an interviewer bias that mail-in questionnaires do not have. For example, in a personal interview the respondent's perception of the interviewer may affect the responses. Sampling Plan The sampling frame is the pool from which the interviewees are chosen. The telephone book often is used as a sampling frame, but have some shortcomings. Telephone books exclude those households that do not have telephones and those households with unlisted numbers. Since a certain percentage of the numbers listed in a phone book are out of service, there are many people who have just moved who are not sampled. Such sampling biases can be overcome by using random digit dialing. Mall intercepts represent another sampling frame, though there are many people who do not shop at malls and those who shop more often will be over-represented unless their answers are weighted in inverse proportion to their frequency of mall shopping. In designing the research study, one should consider the potential errors. Two sources of errors are random sampling error and non-sampling error. Sampling errors are those due to the fact that there is a non-zero confidence interval of the results because of the sample size being less than the population being studied. Non-sampling errors are those caused by faulty coding, untruthful responses, respondent fatigue, etc. There is a tradeoff between sample size and cost. The larger the sample size, the smaller the sampling error but the higher the cost. After a certain point the smaller sampling error cannot be justified by the additional cost.
  30. 30. - 30 - While a larger sample size may reduce sampling error, it actually may increase the total error. There are two reasons for this effect. First, a larger sample size may reduce the ability to follow up on non-responses. Second, even if there are a sufficient number of interviewers for follow-ups, a larger number of interviewers may result in a less uniform interview process. Data Collection In addition to the intrinsic sampling error, the actual data collection process will introduce additional errors. These errors are called non-sampling errors. Some non-sampling errors may be intentional on the part of the interviewer, who may introduce a bias by leading the respondent to provide a certain response. The interviewer also may introduce unintentional errors, for example, due to not having a clear understanding of the interview process or due to fatigue. Respondents also may introduce errors. A respondent may introduce intentional errors by lying or simply by not responding to a question. A respondent may introduce unintentional errors by not understanding the question, guessing, not paying close attention, and being fatigued or distracted. Such non-sampling errors can be reduced through quality control techniques. Data Analysis - Preliminary Steps Before analysis can be performed, raw data must be transformed into the right format. First, it must be edited so that errors can be corrected or omitted. The data must then be coded; this procedure converts the edited raw data into numbers or symbols. A codebook is created to document how the data was coded. Finally, the data is tabulated to count the number of samples falling into various categories. Simple tabulations count the occurrences of each variable independently of the other variables. Cross tabulations, also known as contingency tables or cross tabs, treats two or more variables simultaneously. However, since the variables are in a two- dimensional table, cross tabbing more than two variables is difficult to visualize since
  31. 31. - 31 - more than two dimensions would be required. Cross tabulation can be performed for nominal and ordinal variables. Cross tabulation is the most commonly utilized data analysis method in marketing research. Many studies take the analysis no further than cross tabulation. This technique divides the sample into sub-groups to show how the dependent variable varies from one subgroup to another. A third variable can be introduced to uncover a relationship that initially was not evident. Marketing Research Report The format of the marketing research report varies with the needs of the organization. The report often contains the following sections: Authorization letter for the research Table of Contents List of illustrations Executive summary Research objectives Methodology Results Limitations Conclusions and recommendations Appendices containing copies of the questionnaires, etc. Concluding Thoughts Marketing research by itself does not arrive at marketing decisions, nor does it guarantee that the organization will be successful in marketing its products. However, when conducted in a systematic, analytical, and objective manner, marketing research can reduce the uncertainty in the decision-making process and increase the probability and magnitude of success.
  33. 33. - 33 - RESEARCH METHODOLOGY Research Methodology consists of Inductive (simulation), qualitative and quantitative research procedures and employing triangulation (comparing real world effective teams to interrogate the social network organizational model). Research Methodology is a way to systematically solve the research problem. We can say that the research methodology has many dimensions and research methods do constitute a part of research methodology. When we talk about research methodology we not only talk of the research methods but also the logic behind the methods we use in the context of the research study and explain why we are using a particular method or technique and why we are not using others so that research results are capable of being evaluated either by the researcher himself or by others. QED Baton has its own methodology to go about the report preparation which eventually formed the research methodology for my project work. The same process is developed below: RESEARCH PROCESS USED 1. Identification of market / Industry to be researched ILR requirement is communicated by the client. The client requirements are studied, a discussion with senior manager and research head. This discussion results in a way of doing the research, the parameters to be looked for, the depth of data collection and analysis. The most important decision is concentration on the market segments to be concentrated and researched on so as all the segments or sections of the market are covered as expected by the client. Actually the client instructs about the criterion for the report generation; but this identification of subsections and industry types helps towards increased efficiency and effectiveness of the report generation.
  34. 34. - 34 - 2. Identifying research sources After the guidelines are available, the approach is decided, the availability of sources is checked with respect to their feasibility or suitability for the specific campaign. 3. Information gathering (i.e. Data Collection) Once the sources are allocated (or the web sources to be used are decided), one of the important tasks is already over. Now the important task of collecting and segregating the useful data out of the huge pool of available data on internet is done. This is a secondary data collection. If the process needs to collect primary data, then the techniques like email discussions, teleconferencing, discussions, interviews with the key personnel in the target industry are carried out which forms an important aspect of the research as it gives the inputs about the latest trends, where is the industry moving towards? What is going to be the next thing? Information gathering is very crucial as the data available on web is huge. The intelligence must be applied to go through the available data, understanding the things, interpreting the things and what not! The most important data must be searched must not be missed under any circumstances. This needs specialised techniques in using search engines and web crawlers. 4. Data Analysis After the data is collected, it must be analysed carefully. Sometimes the data collected might be just a repetition of the same data, sometimes the data collected gives beautiful and crucial insights of the industry we target. Sometimes the data collected may prove that the targeted industry is no more a potential industry for the client. These inferences are very crucial as they save a lot of time and money and management efforts might have been wasted if the information was not made available. Analysis gives the insights of the industry which helps in deciding the heads to be covered in the report. 5. Preparation of ILR Format Data analysis is like summarising and inferring the collected data. Even though it does not reach to any conclusion, it is the first step towards the
  35. 35. - 35 - conclusion. After the analysis is done, then is becomes feasible for the researcher to prepare the format of the report (here ILR). The format of the report is kept flexible till the time it is finalised. The format once decided may be modified with respect to the requirements of the client. 6. Presentation to Internal team After the initial format is prepared, it put forth to the internal research team and the management. The individual researcher gives the presentation on the format of the report which includes mentioning the client requirements, decisions of the initial discussions, method used for data collection, some key observations might be shared at that time if they are that important. 7. Corrections The presentation to the internal team is followed by a question-answer session where brain storming on the format of the report to be prepared is made, as the format preparation is going to deicide the guideline for such further reports. The corrections suggested are accommodated in the format of the report and the report format is now Finalised and signed by the research team Head. 8. Report preparation After the report format is available, any report is comparatively easy to generate. The same process from step 1 to step 5 are repeated but from the view point of generating a industry report based on the client requirements and the format of the report. After the report is prepared by the researcher, the report is overviewed by senior researcher or the respective account manager. 9. Final Report Preparation and delivery / presentation to the client After the account manager is satisfied with the report, the final report is drafted involving security measures for protection of the report. After the final report is generated, it is either presented or delivered to the client.
  36. 36. - 36 - FORMAT FOR ILR
  37. 37. - 37 - STANDARD FORMAT FOR INDUSTRY LEVEL REPORT 1) Target Industry Overview: Industry Segmentation Size of Industry IT Imperatives in the Industry Number total players (Region Specific or General) Major Players Major IT Vendors Industry Trends External Business Drivers 2) Analysis of top 5 Companies in the industry: 2.1 General Information Employees Fiscal Year Locations 2.2 Industry Information Primary Industry Secondary Industry Tertiary Industry 2.3 Right Party Contact information List of key decision makers (Campaign specific) 2.4 Services Offered 2.5 IT Landscape General Information pertaining to ERP, SCM, CRM, anything in particular pertaining to the campaign)
  38. 38. - 38 - 2.6 Competitors 2.7 Financial Information Revenue Profit Net income Parameter 1 (Pertaining to the Campaign, say any specific financial information like Stocks) Parameter 2 (Pertaining to the Campaign, say services offered to its existing clients). 2.8 Competitive Benchmarking Comparison 1: Revenue Analysis w.r.t. to competitors Comparison 2: Net Income Analysis w.r.t. to competitors Comparison 3: Any other (Campaign specific) financial analysis Comparison 4: Industry trends & company comparison pertaining to the above parameters. 3) Analysis of top 5 competitors (providing same products / services): 3.1 General Information Employees Fiscal Year Locations 3.2 Financial Information Revenue Profit Net income
  39. 39. - 39 - 3.3 Product / services details Product / services Vis revenue break up Latest versions of product in market and stage in PLC 3.4 Clients of competitors Details of 3 clients of each competitor Products / Services offered to each client by competitors 3.5 Competitive Benchmarking of Client with competitors Comparison 1: Revenue Analysis w.r.t. to competitors Comparison 2: Net Income Analysis w.r.t. to competitors 4) SWOT analysis of Client w.r.t. information available :
  40. 40. - 40 - ILR FOR ISV INDUSTRY IN USA
  41. 41. - 41 - INDUSTRY LEVEL REPORT FOR INDEPENDENT SOFTWARE VENDORS INDUSTRY IN USA OVERVIEW OF INDEPENDENT SOFTWARE VENDORS INDUSTRY IN US : No of companies: 50,000 companies Total annual revenue: $180 billion Giants such as Microsoft, Oracle, Computer Associates, Electronic Arts, and others with more than $1 billion in annual revenue hold a combined 40 percent share of the market, but the average software company has annual sales under $5 million. More than half revenue generation is from sales of packaged products and the rest from custom programming. Packaged software products are generally small programs that can be installed and operated by the customer without assistance. Business-oriented packaged products may cost up to $10,000, but most consumer-oriented products cost less than $500. Custom programming either creates a new software product from scratch, or, more typically, customizes an existing software product for customer use. Custom program products can be very large, costing millions, and may require special training and technical support. The US economy heavily influences business spending for software products. The success of programming companies depends heavily on strong technical expertise. The success of packaged-software companies depends on marketing expertise and technical innovation. Small software companies compete mainly by developing packaged products in small niches or producing custom products for individuals. Because of the marketing muscle of large companies, many small companies partner with them. ILR (Industry Level Report) for ISV (Independent Software Vendors) in US
  42. 42. - 42 - SECTORS OF THE ISV INDUSTRY: 1. PC Business Software 2. Networking Software 3. Multimedia and Graphics Software 4. Pre-Recorded Music and Video Software 5. Home, Leisure and Entertainment Software 6. Systems Software 7. Application Software 8. Security Software 9. Internet Software & Services 10. Embedded Software 11. Robotic Simulation and Control Software (RSCS) 12. Industrial Software TOP FIVE COMPANIES RANKED BY THEIR REVENUE IN 2005:- 1. Microsoft 2. IBM Software (owned by IBM) 3. Oracle 4. SAP 5. Symantec Corporation 6. CA ILR (Industry Level Report) for ISV (Independent Software Vendors) in US
  43. 43. - 43 - ANALYSIS OF TOP 5 COMPANIES General Information:- Employees, Fiscal Year, Locations:- Company Name No. of Employees Fiscal year Location Microsoft 61,000 Dec-05 Redmond IBM Software 329,373 (whole IBM) Dec-05 Armonk, NY Oracle 56,133 May-06 Redwood City, CA SAP 35,873 Dec-05 Walldorf, Germany Symantec 16,000 Mar-06 Cupertino, CA Financial Information:- Software Revenue, Gross Profit, Net Profit of Top 5 Companies for FY 2005:- Company Name Revenue (million $) Gross Profit (million $) Net Profit (million $) Microsoft 39,788 26,128 12,254 IBM Software 15,753 12,287 1,792 Oracle 14,380 6,449 3,381 SAP 3,558 2,308 319 Symantec 4,143 3,161 156 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 Microsoft IBM Software Oracle SAP Symantec Company Million $ Revenue (million $) Gross Profit (million $) Net Profit (million $) ILR (Industry Level Report) for ISV (Independent Software Vendors) in US
  44. 44. - 44 - Product / services details:- Product / services vis-à-vis revenue break up Microsoft:- Year Year / Revenue (million $) Industry 2005 2004 2003 Microsoft Client 12,234 11,546 10,394 Server and Tools 9,885 8,538 7,192 Information Worker 11,013 10,653 9,113 Business Solution -803 -759 -631 MSN 2,274 2,216 1,953 Mobile and Embedded Devices 337 247 156 Home and Entertainment 3,242 2,876 2,748 -2,000 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 M icrosoftC lient Serverand Tools Inform ation W orker Business Solution M SN M obile and Em bedded Devices Hom e and Entertainm ent Industry Solution Million$ 2005 2004 2003 ILR (Industry Level Report) for ISV (Independent Software Vendors) in US
  45. 45. - 45 - IBM Software:- Year / Revenue (million $) Industry 2005 2004 Middleware 12,552 11,968 Operating Systems 2426 2474 Other 775 652 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Middleware Operating Systems Other Industry Solution Million$ 2005 2004 Oracle:- Year / Revenue (million $) Industry 2006 2005 2004 Database and Middleware 14,380 11,799 10,156 Applications 3,381 2,886 2,681 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 Database and Middleware Applications Industry Solution Million$ 2006 2005 2004 ILR (Industry Level Report) for ISV (Independent Software Vendors) in US
  46. 46. - 46 - SAP:- Year / Revenue (million $)Revenue according to software solutions 2005 2004 2003 Enterprise Rosource Planning (ERP) 1,480 1,266 1,024 Customer Relationship Management (CRM) 770.87 640.48 562.5 Supply Chain Management (SCM) 650.71 613.63 571.44 Product Lifecycle Management (PLM) 162 213.49 582.95 Business Intelligence/Supplier Relationship Management (SRM) 207.1 187.92 349 Other Components 225 97.16 NA 0 200 400 600 800 1000 1200 1400 1600 EnterpriseRosource Planning(ERP) Customer Relationship Management(CRM) SupplyChain Management(SCM) ProductLifecycle Management(PLM) Business Intelligence/Supplier Relationship Management(SRM) OtherComponents Industry Solution Million$ 2005 2004 2003 ILR (Industry Level Report) for ISV (Independent Software Vendors) in US
  47. 47. - 47 - Symantec:- 2006 Sales Product/Service Million $ % of Total Consumer products 1,388.60 34 Enterprise security 1,080.40 26 Storage & server management 793.80 19 Data protection 744.00 18 Services 136.60 3 Total 4,143.40 100 0.00 500.00 1,000.00 1,500.00 2,000.00 2,500.00 3,000.00 3,500.00 4,000.00 4,500.00 Consumer products Enterprise security Storage& server management Data protection Services Total Product / Solution Million$ ILR (Industry Level Report) for ISV (Independent Software Vendors) in US
  48. 48. - 48 - Clients of Top Companies:- Microsoft:- CA Group Serface technik Brandlines IBM:- Contact Energy, New Zealand British Columbia Automobile ssociation Johny s Selected Seeds Oracle:- Metalsa Hologic Inc. Polpharma SAP:- Editorial Aranzadi ESA BWXT Y-12 Symantec:- CAN Inc. American Systems EDS Products / Services offered to each client by Top Companies Microsoft:- CA Group: Microsoft Exchange Server 2003, Microsoft Office Professional Edition 2003, Microsoft Office Project Server 2003, Microsoft Office SharePoint Portal Server 2003, Microsoft Office XP Professional, Microsoft SQL Server 2000, Microsoft Windows Server 2003 Standard Edition Surface Technik: Microsoft Small Business Server 2000, Microsoft Windows XP Professional randLines: Integration of Backend Solution on Windows 2003 Server System integrated Server Software and standardised its desktop on Microsoft Office System. ILR (Industry Level Report) for ISV (Independent Software Vendors) in US
  49. 49. - 49 - IBM:- Contact Energy: IBM Rational Portfolio Manager to Establish Alignment between Information Management (IM) and the Business British Columbia Automobile Association: IBM Database Software and IBM Server Johnny s Selected Seeds: IBM Websphere content Discovery Server Classification Module Oracle:- Metalsa: Oracle Financials, Oracle Cash Management, Oracle Treasury, Oracle Enterprise Asset Management, Oracle Human Resources, Oracle Self Service, Oracle Training Administration, Oracle Payroll, Oracle Discrete Manufacturing, Oracle Manufacturing Scheduling, Oracle Quality, Oracle Inventory, Oracle Warehouse Management, Oracle Purchasing, Oracle Order Management, Oracle Shipping Execution, Oracle Demand Planning, Oracle Release Management, Oracle Advanced Pricing Hologic Inc.: Oracle Financials, Oracle Assets, Oracle Financial Analyzer, Oracle Cash Management, Oracle Quality, Oracle Discrete Manufacturing, Oracle Order Management, Oracle Purchasing, Oracle iSupplier Portal, Oracle Discoverer, Oracle TeleService, Oracle Mobile Field Service, Oracle Depot Repair, Oracle Field Service, Oracle Service Contracts, Oracle iStore, Oracle Internet Expenses, Oracle Human Resources Polpharma: Oracle Financials, Oracle Assets, Oracle Financial Analyzer, Oracle Discoverer, Oracle Cash Management, Oracle Process Manufacturing, Oracle Quality, Oracle Manufacturing Scheduling, Oracle Supply Chain Management, Oracle Purchasing, Oracle Order Management, Oracle Inventory Control, Oracle Warehouse Management, Oracle Mobile Supply Chain, Oracle Advanced Supply Chain Planning, Oracle Demand Planning ILR (Industry Level Report) for ISV (Independent Software Vendors) in US
  50. 50. - 50 - SAP:- Editorial Aranzadi: MySAP CRM used to Increase Customer Loyalty and Cut Costs ESA: Integrated Field Sales Solution to support sales and and consulting processes by using mySAP CRM BWXT Y-12: BWXT Y-12 Uses SAP® Software to Redefine Information Technology and Integrate Business Processes at the Y-12 National Security Complex Symantec:- CAN Inc.: Cuts email related support calls in half with Symantec Enterprise Messaging Management solution. American Systems:Realizes $87,500 annual savings with a Symantec BindView solution. EDS: Veritas Storage Foundation for Oracle, Veritas Storage Foundation for DB2, Veritas Storage Foundation for Sybase, Veritas Storage Foundation for Oracle RAC, Veritas Cluster Server, Veritas CommandCentral Service, Veritas NetBackup PureDisk Remote Office Edition, Veritas NetBackup, Symantec i³ Competitive Benchmarking of Top Companies:- Revenue and Net Income Analysis of Top Companies for FY 2005:- Company Revenue (million $) Net Income (million $) Microsoft Corporation 39,788 12,254 IBM Software 91,100 8,000 Oracle Corporation 11,799 2,886 SAP AG 10,883 1912 Symantec Corporation 2582.80 536.2 ILR (Industry Level Report) for ISV (Independent Software Vendors) in US
  51. 51. - 51 - 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 Microsoft Corporation IBM Software Oracle Corporation SAP AG Symantec Corporation Company Million$ Revenue (million $) Net Income (million $) Net income and revenue comparison with respect to other Industry Players Revenue (Millions) Profit Margin Employees Market Cap (Millions) Microsoft Corporation $44,282.00 41.20% 61,000 $245,814.70 Oracle Corporation $14,380.00 33.50% 56,133 $78,522.60 SAP AG (ADR) $10,866.60 27.30% 37,743 $54,377.90 Symantec Corporation $5,004.40 5.60% 16,000 $17,389.90 CA, Inc. $3,796.00 3.20% 16,000 $12,323.60 Electronic Arts Inc. $2,951.00 12.30% 7,200 $15,296.50 Konami Corporation (ADR) $2,258.90 1.60% 5,127 $3,416.90 Intuit Inc. $2,037.70 27.30% 7,000 $10,356.80 Adobe Systems Incorporated $1,966.30 31.00% 5,734 $18,446.90 Autodesk, Inc. $1,523.20 22.00% 4,813 $7,490.90 BMC Software, Inc. $1,498.40 16.60% 6,200 $4,966.40 ILR (Industry Level Report) for ISV (Independent Software Vendors) in US
  52. 52. - 52 - Key Observation:- 1. The commercial software industry of 2003 was a $175 billion economic engine with 2.3 million jobs worldwide. 2. Spending on R&D by firms in the software industry in 2000 alone was over $12 billion and since 1997 has accounted for over $38 billion. Spiraling R&D Costs, Rising numbers of software developers in the US are crowding the software marketplace, with companies investing increasingly into R&D in order to differentiate their products within the marketplace. This increasing leverage on company capital to fund R&D will provide significant liquidity risks for software developers in the US. 3. Software Development Industry figures as of August 3, 2006:- Average revenue growth of top 500 companies in 2006: 19.9% Average revenue growth of top 500 companies in past 3 years: 15.9% 4. Operating system sales account for the majority of the US software markets revenues though security software is currently the fastest growing sector, with Symantec and McAfee, the leading producers of security suites, producing revenues of $1.2 billion and $570 million in 2003. The rapid growth of this sector is a result of the increasingly complex threat posed by viruses in today s computing landscape. The computer gaming sector has provided significant income for the market in 2004 though escalating development costs and increasing competition could stunt future growth. 5. Open Source With Linux demonstrating momentum within the operating systems sector, and open source dominating the web-server sector, the trend towards open source software is redefining the dynamics of the software industry, threatening software manufacturers future revenues whilst reviving a sense of innovation in the market. 6. Increasing PC Sales Escalating PC sales in the US, driven by the spiraling online population and the growth of digital multimedia, have created huge additional demand for computer operating systems, driving revenue growth for software manufacturers. 7. Computer software developers have begun to outsource their hugely important test-cycles to dedicated testing labs, concentrating their labor resources into ILR (Industry Level Report) for ISV (Independent Software Vendors) in US
  53. 53. - 53 - the company s core competencies. The trend will allow developers to obtain an independent, experienced perspective of their product. 8. The US videogame industry has continued its significant growth in 2005, with several leading software producers expanding into the sector to exploit the huge revenues on offer whilst diversifying their product portfolios, thus mitigating their risk to future market fluctuations. 9. In the United States the industry lost nearly $2 billion in 2002, and more than 105,000 jobs, more than $5.3 billion in lost wages and more than $1.4 billion in lost tax revenue. In 2002, the global piracy rate was 39 percent and in the United States, the piracy rate was 23 percent. 10. Based on current statistics and estimates, the software industry remains a dynamic sector in the U.S. economy. The demand for software reached a new record last year. That demand created a significant industry trade surplus and allowed the software industry to contribute significantly to the U.S. economy. Industry employment remains steady and pays above average wages to its workers. Software industry wages not only help support all levels of government through income tax, but also generate additional employment, wage, and tax impacts when they are spent. Although the industry s impacts are significant, they would have been even higher without piracy. New forms of online piracy create new challenges for the software industry as it meets an increasing demand for its products and consequently supports the U.S. economy. 11. Annual Receipts of packaged software industry in the United States (US $ Billion):- 0 20 40 60 80 100 1993 1995 1997 1999 2001 Packaged Sofrware 12. Identity theft costs US businesses more than $48 billion annually (Source: Symantec Corporation) ILR (Industry Level Report) for ISV (Independent Software Vendors) in US
  54. 54. - 54 - Concluding Remarks: 1. Sooner or Later, Even Linux Has to Turn a Profit (source: Gartner). 2. Mergers and Acquisitions becomes the trend in the industry. 3. Expansions into countries like Dubai, India and China is rising and will rise in the next few years. 4. Outsourcing increases to increase the cost savings. ILR (Industry Level Report) for ISV (Independent Software Vendors) in US
  55. 55. - 55 - LIMITATIONS
  56. 56. - 56 - LIMITATIONS 1. The research being mostly dependent on secondary data (as the territory was outside India, so it was not feasible to collect primary data to the extent it should be). 2. Standardisation of ILR is for ease of development of the report most effectively and efficiently; but the changing requirements of clients may induce changes in the report from the standard format.
  57. 57. - 57 - CONCLUSION
  58. 58. - 58 - CONCLUSION 1. ILR format is standardised with the flexibility to accommodate the flexibility needed to have continual improvements or changes which may include some additions and deletions with respect to the changing customer requirements and changing market or industry scenario. 2. Concluding remarks of the ILR on ISVs: Sooner or Later, Even Linux Has to Turn a Profit (source: Gartner). Mergers and Acquisitions becomes the trend in the industry. Expansions into countries like Dubai, India and China is rising and will rise in the next few years. Outsourcing increases to increase the cost savings.
  59. 59. - 59 - BIBLIOGRAPHY
  60. 60. - 60 - BIBLIOGRAPHY Google Search and Rescue for dummies -by Brad Hill, Wiley Publishing, Inc. Research Methodology -by C. R. Kothari, New Age International Publishers
  61. 61. This document was created with Win2PDF available at The unregistered version of Win2PDF is for evaluation or non-commercial use only.