Vinay Kumar

EPGP-10-078

Precise Software Solutions

1. Should Alon plan on introducing Insight at Openworld 2000? Why or why not?

Ans. Alon should go ahead and introduce the Insight at Openworld 2000, the reasons for the
same are listed below:

a. First mover advantage would be hugely beneficial to the company in terms of

capturing market.
b. Marketing of the product at this platform will create curiosity in the participants
who are decision makers and industry influencers
c. They can gain immensely by being agile and incorporate changes which would be
needed by clients and incorporate in the product.
d. No product is perfect product and on shouldn’t wait endlessly for the perfect
product as any delay in introducing the product will only allow competitors to
catch up and capture the market.
2. What should Precise strategy be for Insight? Should they launch a separate sales
force for the new Product or sell it through their existing sales force? How good is
their current salesforce?
Ans: Precise strategy should be to go ahead with short term and long strategy, in short term
they should first start with in house sales team and train them for selling this product, they
should be able to articulate the benefits of the Insight and value being added by Insight.
Since Insight being new product and yet work in progress it is better to gain the first hand
feedback from customers and implement the changes being requested. It will help keep tab
on the customer pulse and change the strategy accordingly. In long term they can go ahead
with Partner driven sales when the market has accepted the product and they need to scale.
They should launch new sales team since the product is new and value being added is
complex to comprehend. Their current salesforce needs training as they depend mostly on
DBA to meet clients and most of they time they are not able to convince senior IT manager,
they have low rapport with CIOs which is important to have the sales of Insight.

3. How should Insight be priced?Develop an ROI model for Precise/SQL product.

Ans:

Hardware saving

Annual average Hardware Budget

1,430,000
affected by Precise/SQl
Savings for hardware if purchased after
30%
1 Year
Postponing by 3 months probability 60%
Savings in Total 64,350

DBA Savings
 DBA
45 hours a week work 40

Saved Hours per DBA for a week 9.4

Average DBA Salary $60,000

Hours / Per Year 52 * 40 2080

Hours Saved / per year 52 * 9.4 488.8
Savings – Per DBA (9.4/40) * 14100
60000
Total Number of DBAs 10

DBA – Savings 10 * 14100 141000

Total users savings

End User Salary 30,000

Average Employee Burden 33%

Rate

Time Improvement for end 25%

user

Savings / User 2475

Number of Users in total 215

Savings for all the users 2475 * 532125

currently in the system 215
 Total Savings DBA installation with
25% discount
64,350+141000+532125 10*(25000*.75) =
= 737475 187,500

ROI = ( (141000 – 187500) / 187500 ) = 248%