Submitted to:

Sir Riaz-ud-din

Submitted By:
Amna Riaz
Sadaf Zehra
Shahab Mustafa
MBA III

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 BATCH 2007-2009

DADABHOY INSTITITE OF HIGHER EDUCATION

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 Praise be to Allah, the Lord of the worlds,
The Beneficent, the Merciful
Owner of the Day of the Judgment
Thee (Alone) we worship Thee (Alone) we as for help
Show us the straight path
The path of those whom thou hast favored
Not (the path) of those who earn
Thine anger nor of those who go astray (A l - Fa t iha )

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Dedications:
To our loving parents are cooperative teachers especially Mr. Riaz Uddin with whom
support and continues support we are able to make this project. Without their love,
support and guidance we could not have been able to make this report.

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Acknowledgments:
The credit of this extensive and intensive research and project development goes to our
respected mentor Mr. Riaz Uddin who always helped us and guided us through out our
project work. Also to IT professional of NADRA and PLEXUS (PVT) LTD. For their
guidance and support who gave us practical knowledge about software houses.

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Executive Summary

SAS TECH is a start-up organization whose vision is to create the finest

education/entertainment software for non-reading individuals with developmental
disabilities. The software product has been designed and created by IT specialist with
vast industry experience and knowledge, to meet the needs of this targeted customer
segment. The software will be constructive by giving customization to the product and
will be according to client’s choice and requirement. SAS TECH will be formed in
August 2009 as a Customer oriented IT platform idea founded and owned by partners
Ms. Amna, Ms. Sadaf & Mr. Shahab

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SAS Tech is the software house which is concentrating on Pakistani projects
specially to participate in development of Pakistan thus enhancing IT value and strength
in country.

Mission Statement:
Giving quality products to the active economy drivers in market

Vision:
Focusing on providing quality services to the target market which is playing important
role in country economy and progress i-e Business concerns, manufacturing concern,
banks and educational institutes. Thus we can promote technology within these working
concerns which results into their efficient participation in Pakistan’s eonomy and
progress.

1-Market Analysis
The Pakistani IT industry today has an impressive story to tell. Much like the successful
startup that one would have not heard of a few years ago but is all of a sudden the talk of
the town. The Pakistan IT industry has started to appear on the radar of firms like Gartner
and IDC and in reports by AT Kearny and the World Bank. It is a transformed industry
growing exponentially and creating a stir.
1.1 Estimated Size of IT Industry
From its nascent beginnings in the late 1980s, the industry has successfully arrived to a
point where its value proposition has been validated over and over again. The largest
members are grossing 15-25 million dollars in revenues, and receiving 100 million dollar
valuations. Most tech companies are growing in excess of 30% a year annually. The
industry as a whole is doing over 2 billion dollars a year in revenue, up from less than a
billion dollars a few years ago.

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1.2 Software & Services Sector with 39% Growth
For 2007 – 08
About half of this growth is coming from foreign, software and high end services
projects. IBM, Cisco and Microsoft are expanding Pakistan operations aggressively while
several startups are now backed by VCs such as e-Planet Ventures, Motorola, and Adobe.
1.3 Employment of Professionals by 41% Growth
Sectors and countries have achieved in 15-20 years, Pakistan’s technology scene is poised
to achieve in less than a decade.
Putting it all together, the Pakistani Technology industry is very different from what it
was in the early 1990’s. From 4 founding companies in 1994, PASHA’s current
membership exceeds 370. From 4,619 full-time employees in 2004, current employment
is at 12,232 and rising.
The number of QA Professionals has doubled in the last 3 years and 20% of those
employed in the sector are foreign qualified. Fast becoming a hub of high performance
business, the questions now asked are if growth this year will be 28% or 50%, if there
will be enough skilled HR to staff demand, if there will be enough office space available
next year.

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2-The Industry at Glance

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3. Departments:

Our main idea is to open a software house in Karachi which would be the biggest
software house in the Pakistan. We will have mainly two departments.

Departments

Direct Projects Out sourcing

3.1 Prospecting Projects

 Supporting ANR (Afghan National Refugee):

We will support ANR project in collaboration with NADRA by using SQL, Oracle
 Data Base for Institutions

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Basically concentrating on the projects and solutions for institutions like Educational,
Medical and Business Growing Institutes.
3.2. Launch of New software:
o SAS TECH will launch new software and will introduce a new idea in history of
Pakistan.
o We will introduce software that will help the disable people. This idea has been
taking from research work of Dr. Sue who first introduced the idea of starting
software of such kind.

4. The Market
SAS TECH has identified four distinct market segments that will be interested in the
software product. These segments are the most likely consumers of the software. The
segments are as follows:

• IT Intensive Corporate - The corporate and commercial business which are

focusing on IT software and having IT oriented environments e.g. banks,
manufacturing concerns.
• Proactive Educational Concerns- Educational institutes who are taking an active
role in the education of their students will be looking for aids that they can use at
educational places to help with their students learning progress.
• Agencies- Internationally many countries have agencies that act as brokers to
connect service providers with individuals. The agencies have generally been formed
as a result of a settlement or payout from a lawsuit (including class action).

4.1Competitive Edge
There is several companies on the market selling business and educational products for
this target segment. SAS TECH will leverage their competitive edge by incorporating
entertainment into their software product, a means of creating interest while using the
software. This interest will increase the amount of time that the users use the software,
thereby increasing the effectiveness of the program. SAS TECH is convinced that the
customer interest and trust towards the product instead of having to be forced to use it.

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 SAS TECH has been inspired by development in IT industry. SAS TECH has forecasted
revenues of Rs.400, 397 and Rs.490, 000 for years two and three.

4.3 Keys to Success

• Develop business and educational software that is constructive and supportive. If

it is not so, it likely will not be used.
• Implement a strong marketing campaign to develop awareness of the software and
its benefits within all of the business centers, educational institutes, brokerages.
• Design strict financial controls for the organization.

4.4 Objectives

• Increase sales by triple for the first two years.

• Achieve 20% market penetration by year four.
• Assist more than 10,000 different individuals with development disabilities.

500,000

400,000

300,000

200,000

100,000

(100,000)

2009 2010 2011

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5. Company Ownership

The company was founded and is owned by Ms Amna Riaz. She is a respected,
enthusiastic, passionate and strategic, former educator of special education with an
emphasis on autism. Sue will leverage her extensive knowledge and industry contacts to
make SAS TECH a success.

5.2 Start-up Summary

SAS TECH is a start-up organization. The following assets and professional services will
be needed for the formation and start of operations.

• Legal services for company formation.

• Accounting services to set up the accounting shell of the company QuickBooks
Pro software.
• Computer programmers (3) to rapidly develop the software. An individual
programmer could complete the coding of this product however; SAS TECH is
interested in launching the product fast therefore they will employ multiple
programmers to speed the process up.
• Eight computer workstations, including one server. Seven of the stations will have
Microsoft Office; one of them will have QuickBooks Pro. Three networked laser
printers.
• A broadband Internet connection.
• Office cubicle furniture for seven employees.
• Seven extension telephone system.
• Copier and fax machine.

• Lunch room furniture and appliances including a refrigerator and microwave.

• Shipping materials including boxes scales, etc.
• Promotional materials.

Market Analysis Summary

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The market for life skills training software can be segmented into four groups. The first is
centers for independent living, the second is school districts, the third is proactive
parents, and the last is agencies charged with special education administration. Each of
the four segments is distinct and will be communicated with in different ways. These four
segments have been chosen because they are the main purchasers of products for
individuals with developmental disabilities.

The software industry for individuals with developmental disabilities has just begun to
grow. Only within the last few years has there been a significant increase in the number
of computers found in classrooms using specialized software. Competing with the
software companies are products that have printed pictures on them, typically laminated
cards. While these cards are helpful, they are less interactive.

Market Segmentation

SAS TECH has identified four distinct market segments for their products:

• Centers for Independent Living- These are typically not-for-profit entities that
assist individuals with developmental disabilities. The centers help clients with
transition skills, making them more independent. These centers offer a wide range
of life skills training for the individuals.
• School Districts- All students are guaranteed an education therefore the school
districts must provide the appropriate education until the individual is 21 years
old. School districts are consumers of these products in pursuit of their goal of
providing the students with an appropriate education.
• Proactive Parents- These are parents of individuals with developmental
disabilities who are taking an active role in their child's education/life skill
training. Reinforcing these skills as much as possible is useful; therefore there are
many parents that will purchase the software for home use.
• Agencies- Many states, often as a reaction to a lawsuits (individual and class
actions) have set up agencies or brokerages whose purpose is to dispense money
from the state to the service providers assisting the individuals in need.
• Money from the state to the service providers assisting the individuals in need.

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SWOT Analysis:

Strength:
 Highly qualified staff
 Introduction of new technology in Pakistan
 Providing customized products.
 Focusing on multiple target markets.
 Quality value added services.
Weakness

 Lack of training within organization in start of business

 Name recognition

Opportunities:
 Vast market
 Untapped target market to cover
 Variety of products according to clients demand

Threats

 Globalization trend

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  High turn over rate
 Impact of Economy deterioration in market.

6-Technical Analysis:
6.1 Labor

. A professional software house normally consists of at least three dedicated sub-teams :

• Business Analysts who define the business needs of the market

• Software Designers/programmers who creates the technical specification and next
do a coding
• Software Testers who are responsible for the whole process of quality
management

The pros:

• Each person has full knowledge about the full production cycle
• People are doing various tasks what makes especially young people excited about
their work
• There is a very good possibility to manage the work load especially in crisis
situations like "all hands on pump"

6.2 Location and Size:

Our software house will be situated in main SADDAR area of Karachi. Size of our
software house would be approximately 2 acre.
6.3 Machineries and technology
We need to install high quality machinery. For this purpose we will import our computers
from U.S market and their technical people will install the computers and
networking.

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6.4 Training
For better and efficient use of the imported machinery we will send our experiences
programmers to U.S for training.
6.5 Software House capacity:
We will arrange 24-hours open at our software house and employees will have morning
and night shifts. So we can increase the production capacity of our software house and
ultimately more people will get employment.
6.6 Input Constraints
Biggest constraint is load shedding. For this purpose we will arrange generators.
Generators will increase our cost but it will increase our results accordingly.

6.7 Methodologies

Software house may use a number of various methodologies to produce the code. These
can include:

• The Waterfall Model, including project management methodologies like

PRINCE2 or PMBoK
• Agile Software Development, such as Extreme Programming and SCRUM

There are also some methodologies which combine both, such as the Spiral Model, RUP
or MSF.

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6.8 Projects in Controlled Environments

We will mainly follow PRINCE2. (Projects in Controlled Environments)

Fig: PRINCE2 Methodology

6.9-Software House Sequence

The sequential working of the our Software house with the team and procedures of IT is
given in pictorial form

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7-Financial Analysis

7.1 Cost of Project

The estimated cost of project is Rs 15,670,000 according to proposal research and market
studies.

7.2 Means of Financing

 Partner’s Equity:

Partners Name Equity in Rs Shareholding

Ms Amna Riaz 700,000 25%
Ms Sadaf Zehra 700,000 25%
Mr. Shahab Mustafa 700,000 25%
Ms Khudija Riaz 700,000 25%

 Borrowings

o Borrowing from bank Rs 420,000

o Long-term Loan Rs 840,000

7.3 Projections

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Start-Up Expense
Expense Heads Amount in Rs
Legal 10,000
License 2,000,000
Marketing 210,000
Furniture 900,000
Fixtures 350,000
50, 00,000
Computers
 Hardware & software
 Laptop
 Printer
 Projector
 Main Server
-Networking

Equipments 50, 00,000

 Photostat machine
 Fax machine
 Stationery
 Generator
Telephone
Research & Development 30, 00, 000
Rent Advances and Rent 700,000
Other expenses 500,000
Total Start-Up Expense 15,060,000
Required cash in hand 610,000
TOTAL 15,670,000
7.4 Projected Profit And Loss Statement

Projected Profit And Loss Statement

2009 (in Rs) 2010 (in Rs) 2011 (in Rs)
Sales 2,000,000 2,150,000 2,500,000
Less: Cost of Sales (1,200,000) (1,450,000) (1,500,000)
Gross Profit From Sales 800,000 700,000 1,000,000

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Selling and Administration Expense
Salaries and wages 250,000 250,000 250,000
Commissions 15,000 15,000 30,000
Office suppliers 90,000 90,000 70,000

Legal fees 50,000 50,000 100,000

Advertising 210,000 250,000 300,000
Equipment 50,000 10,000 70,000
Research & development 25,000 35,000 50,000

Interest 70,000 70,000 140,000

Sundry expense 100,000 50,000 90,000
Less: other income 860,000 800,000 1,100,000
Total expenses (75,000) (130,000) (910,000)

Net Profit 5,000 30,000 90,000

7.5Projected Balance Sheet

Assets
Current Assets
2009 2010 2011
Cash 400,000 450,000 650,000
Accounts Receivable 600,000 550,000 500,000
Inventory 165,000 165,000 200,000
Prepaid rent 600,000 675,000 650,000
Bill Board 50,000 (100,000) 250,000
Total Current 865,000 1,940,000 2,250,000
Fixed Assets
Furniture 900,000 900,000 1,000,000
Fixture 350,000 350,000 350,000
Computer Hardware 345,000 345,000 500,000

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Equipment 425,000 425,000 500,000
Less: Accumulated (100,000) (100,000) (100,000)
Depreciation
Total Fixed Assets 1,920,000 1,920,000 2,250,000
Total Assets 3,785,000 3,860,000 4,450,000

Liabilities And Capital

Current Debt:

2009 2010 2011

Accounts Payable 200,000 300,000 250,000
Accrued Expense 100,000 200,000 150,000
Current Borrowing 210,000 210,000 420,000
Subtotal Current 510,000 710,000 820,000
Liabilities
Short term loan Long- 560,000 420,000 840,000
term Loan
TOTAL LIABILITIES 1,070,000 1,130,000 1,660,000

Capital Stock

2009 2010 2011

Ms. Amna Riaz 700,000 700,000 700,000
Ms. Sadaf Zehra 700,000 700,000 700,000
Mr. Shahab Mustafa 700,000 700,000 700,000
Ms. Khudija Riaz 700,000 700,000 700,000
Profit 15,000 30,000 90,000
Total Capital 2,715,000 2,730,000 2,790,000
Total Liab & Capital 3,785,000 3,860,000 4,450,000

8-Strategy and Implementation Summary

SAS TECH will leverage their competitive edge of combining business, education and
manufacturing concerns within their software product to help them quickly gain market
share. All of the competitors software concentrates on skill development. While this is
useful, it does have customer oriented. SAS TECH has added entertaining elements into
their software, encouraging the students to use the software and have fun while they
learn.

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SAS Tech’s marketing strategy will be to raise visibility of the software product among
the decision makers who are business and institutional handlers. The campaign will be
targeted to reach these people/organizations so that they are aware of the options they
have in developing IT environment. Lastly, the sales strategy will seek to convince the
prospective customers that there can be significant gains in learning through SAS Tech’s
carefully designed software.

8.1 Marketing Strategy

SAS TECH's marketing strategy reflects their perception of the industry: that most of the
companies operating today are operated by business and manufacturing concerns;
that they make number of products; but not many people know about the products, and
overall awareness is poor. The reality is that so many prospective customers in Pakistan
are unaware of the different available products. SAS TECH will employ an aggressive
marketing strategy to raise awareness of their products among customers who are in need
of these products, and thereby increasing software purchases. SAS TECH will be
advertising heavily in various industry journals and magazines as a proven method of
reaching the target audience. The ads will generate awareness of SAS TEC Hand will
lead the customers to SAS TECH's website where they can demo the software. This
strategy is based on the philosophy that you can have a great product, but if no one knows
about it you are not going to be successful.

8.3 Sales Strategy

SAS TECH will use an aggressive sales campaign that will rely on conference
participation as well as target cold calling. There are numerous industry conferences
throughout the country that are specifically for educators. The conferences are the places
where people get together and share strategies that work with their colleagues in different
departments and different states. While the conferences are not typically packed with
vendors, SAS TECH will be present since the conferences are a captive assortment of the
right people – the educators that are in the trenches working with the special students.

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The conferences will be an excellent networking opportunity and should develop
significant sales.

The second prong of the sales strategy will be a campaign aimed at contacting key
decision makers and introducing them to SAS TEC Hand their products. Research will be
done to determine target business, manufacturing concerns and educational institutes and
money has been given to agencies to disperse to various service providers. This
information will be valuable in determining who the proper consumer for the special
software is. These personal contacts will help generate significant sales.

8.3.1 Sales Forecast

The following table and charts present sales forecasts in a monthly format as well as
yearly projections. Forecasts have been conservatively estimated to increase the
likelihood of attainment. Sales have been broken down by customer group.

A fulfillment house will be contracted to produce, package, and ship the hard copy
software product to purchasers. Download of the software from the SAS TECH website
will be available. This will drastically reduce cost of goods if purchasers use the
download only purchase option.

Purchaser download of the software from the SAS TECH website will be available. This
will drastically reduce cost of goods if purchasers use the download only purchase option.

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 20,000

18,000

16,000

4,000

12,000

0,000

8,000

6,000

4,000

2,000

2009 2010 2011

Sales Forecast

2009 2010 2011

Sales

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Centers for Independent
Rs.23,439 Rs.96,957 Rs.118,616
Living

School Districts Rs.43,405 Rs.179,550 Rs.219,660

Proactive Parents Rs.9,983 Rs.41,297 Rs.50,522

Agencies Rs.19,966 Rs.82,593 Rs.101,044

Total Sales Rs.96,793 Rs.400,397 Rs.489,842

Direct Cost of Sales 2003 2004 2005

Centers for Independent
Rs.1,641 Rs.6,787 Rs.8,303
Living

School Districts Rs.3,038 Rs.12,569 Rs.15,376

Proactive Parents Rs.699 Rs.2,891 Rs.3,537

Agencies Rs.1,398 Rs.5,782 Rs.7,073

Subtotal Direct Cost of
Rs.6,776 Rs.28,028 Rs.34,289
Sales

8.4 Milestones (Action Program)

SAS TECH has several milestones, presented in the following table and chart, which will
be instrumental in the success of the organization.

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Milestones

Milestone Start Date End Date Budget Manager Department

Busines
Business plan completion 1/1/2004 2/15/2004 Rs.0 Sue
Development

Beta version completed 2/1/2004 4/15/2004 Rs.0 ABC Programming

Organizational hiring
3/15/2004 5/1/2004 Rs.0 Sue HR
complete

Public release of software 4/15/2004 5/15/2004 Rs.0 ABC Programming

Profitability 5/15/2004 5/30/2005 Rs.0 Sue Accounting

Totals Rs.0

9-Web Plan Summary

SAS TECH will develop a website that will be used as both a marketing and sales tool.
On the site interested parties can receive more information regarding the company and

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the current product list. Once the beta version of the software is ready interested
customers can download a trial version of the software for their evaluation. The website
will also provide people with company contact information to allow them to ask any
questions that they may have.

Online sales will be contracted to one of the third party Internet sales businesses, such as
Yahoo! Shopping. The site will provide customers with a download only purchase option.

9.1 Website Marketing Strategy

The website will be marketed using simple yet effective means. The first method is
inclusion of the URL address in all promotional activities. This will be especially
important because it will allow all interested parties to view screen shots of the software
and download a trial version of the product. SAS TECH recognizes that no ad will be
able to communicate everything; therefore SAS TECH will rely on the website to provide
the additional information. The second marketing tool for the website will be
comprehension search engine submission. The submission process will provide SAS
TECH will many visitors to the website. This will be accomplished when an interested
party searches on "autism software" or some other set of keywords. The search engine
will then list a number of "hits" that correspond to the search terms.

9.2 Development Requirements

SAS TECH will employ one computer science student for the design and development of
the website. Development will occur concurrently with the development of the software.

9.1 Personnel Plan

SAS TECH will require the following employees:

• Assistant to Manager will be doing a little of everything from HR to business

development to product development to finance.
• Accounting- an accounting clerk will be hired.
• Software development- two employees will be in charge writing manuals,
instructions, and product bug updates, and version upgrades.
• Marketing Sales- two employees will be hired to generate sales.

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 • Customer Service- two employees will be used to field any questions from
customers or address any concerns/problems regarding orders as well technical
difficulties.

Personnel Plan
2009 2010 2011
Sue Rs.22,000 Rs.26,000 Rs.30,000
Accounting Rs.16,200 Rs.21,600 Rs.21,600
Software Documentation Rs.19,800 Rs.26,400 Rs.26,400
Product Development Rs.15,400 Rs.26,400 Rs.26,400
Customer Service/ Tech
Rs.19,800 Rs.26,400 Rs.26,400
Support
Customer Service/ Tech
Rs.19,800 Rs.26,400 Rs.26,400
Support
Marketing/ Sales Rs.27,000 Rs.36,000 Rs.36,000
Marketing/ Sales Rs.27,000 Rs.36,000 Rs.36,000
Total People 8 8 8
Total payroll Rs.167,000 Rs.225,200 Rs.229200

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Bibliography:

Resources from where the primary research work is done

 http://www.pasha.org.pk/
 IT professional of NADRA and Plexus (Pvt) Limited
 www.wikipedia.com

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