© 2002 IBM Corporation 1 315CSC323 BIT Final Year Project Business Context

timetabling expertise with managed implementation training and consultancy © 2004 eventMAP Limited 2 Lecture Plan  Announcements  Business Context  Business Model – Early Definition  Company Growth

timetabling expertise with managed implementation training and consultancy © 2004 eventMAP Limited 3 Business Context – Early Questions  What Product, Service  Why Why Now, Why You?  Where Market, section of market

timetabling expertise with managed implementation training and consultancy © 2004 eventMAP Limited 4 Business Context – Early Questions  Who will use, will you need to partner? Who will you approach for funding?  How How will this function? How will this fit in with other systems? How do the finances stack up?

timetabling expertise with managed implementation training and consultancy © 2004 eventMAP Limited 5 Business Ideas Form  Title  Aims  Description  Business Needs Addressed  Deliverables  Hardware/Software requirements

timetabling expertise with managed implementation training and consultancy © 2004 eventMAP Limited 6 Assessing the Idea  Market Research – The next Step  Desk / Secondary Research Market Research Reports, Statistical Publications Trade Magazines, Press Cuttings, Internet  Resources - your Local Enterprise Agency; - Your Invest Northern Ireland regional office; - Your local library or Belfast Central Library; - European and Business Information Centre, Upper Galwally.

timetabling expertise with managed implementation training and consultancy © 2004 eventMAP Limited 7 Assessing the Idea  Primary Research - Face to face interviews - Telephone interviews - Postal questionnaires - Discussion or 'focus' groups - Attending Conferences - Samplings.

timetabling expertise with managed implementation training and consultancy © 2004 eventMAP Limited 8 Answers Required  What is the need you fill or problem you solve? (Value Proposition)  Who are you selling to? (Target Market)  How would you make money? (Revenue Model)  How will you differentiate your company from what is already out there? (Unique selling proposition)  What are the barriers to entry?  How many competitors do you have and of what quality are they? (Competitive Analysis)  How big is your market? (Market Size)

timetabling expertise with managed implementation training and consultancy © 2004 eventMAP Limited 9 Answers Required  How fast is the market growing or shrinking? (Market Growth)  What percent of the market do you believe you could gain? (Market Share)  who buys this product or service?  who uses this product or service?  who actually makes the decision to buy?  when and how do people buy?  where do they buy? To evaluate opportunities, entrepreneurs ask the following questions:

timetabling expertise with managed implementation training and consultancy © 2004 eventMAP Limited 10 Answers Required  What type of company would this be? (Lifestyle or High Potential, Sole Proprietorship or Corporation)  How much would it cost to get started? (Start-up Costs)  Do you plan to use debt capital or raise investment? If so, how much and what type? (Investment needs)  Do you plan to sell your company or go public (list the company on the stock markets) one day? (Exit Strategy)  If you take on investment, how much money do you think your investors will get back in return? (Return on Investment)

timetabling expertise with managed implementation training and consultancy © 2004 eventMAP Limited 11 Answers Required  what essential features must the product or service have?  why do people buy?  what benefits are people buying?  are there any standards or regulations my product or service must observe?  who are my competitors?  what are their strengths and weaknesses?  what price should I charge?  what terms and conditions do buyers expect?

timetabling expertise with managed implementation training and consultancy © 2004 eventMAP Limited 12 Initial Answers  Essential Idea ‘flows’ from initial research  Clear evidence would be shown in Interim/final report of marketing effort made.  This should be revisited at all stages of the project

timetabling expertise with managed implementation training and consultancy © 2004 eventMAP Limited 13 Business Model  is the mechanism by which a business intends to generate revenue and profits.business revenueprofits  It is a summary of how a company plans to serve its customers. customers  It involves both strategy and implementation.

timetabling expertise with managed implementation training and consultancy © 2004 eventMAP Limited 14 Business Model  It is the totality of: How it will select its customers How it defines and differentiates its product offeringsdifferentiates How it creates service for its customers How it acquires and keeps customers How it goes to the market (promotion strategy and distribution strategy)promotion distribution How it defines the tasks to be performed How it configures its resources How it captures profit

timetabling expertise with managed implementation training and consultancy © 2004 eventMAP Limited 15 Business Model  Generally, the business models of service firms are more complex than those of manufacturers and resellersservicemanufacturersresellers  Shop Keeper Model  Bait and Hook Model cell phones (bait) and air time (hook); computer printers (bait) and ink cartridge refills (hook); cameras (bait) and prints (hook).

timetabling expertise with managed implementation training and consultancy © 2004 eventMAP Limited 16 Types of Model  Pyramid Scheme Model  Monopolistic Model  Cutting out the middle man Model  Auction Model  Loyalty Model  Hybrid Model’s  times are changing and companies must continuously rethink their business Models.

timetabling expertise with managed implementation training and consultancy © 2004 eventMAP Limited 17 Business Model  Various Aspects - Marketing Model - Financial Model - Technology Model - Sales Model - Implementation Model - Management Model

timetabling expertise with managed implementation training and consultancy © 2004 eventMAP Limited 18 Business Model  Marketing Model - Preliminary to develop idea - Get target Market’s attention - Marketing mix Web page, publication, direct,  Financial Model - All aspects of your business represented financially  Technology Model - Technology background - Development methodology

timetabling expertise with managed implementation training and consultancy © 2004 eventMAP Limited 19 Business Model  Sales Model Sales Life Cycle Who is involved  After Sales Model - What can the customer expect Software releases, Feedback Review process

timetabling expertise with managed implementation training and consultancy © 2004 eventMAP Limited 20 Business Model  Implementation Model - Involvement with Client - What can they expect when?  Company Management Model - Internal workings - Responsibly matrix

timetabling expertise with managed implementation training and consultancy © 2004 eventMAP Limited 21 Company Growth  Needs to be Projected  What is the Methodology to Achieve this  Early proof of concept, Partnering, channels, franchising, sell out?  What is the exit strategy and when?  What is realistic and how often is this reviewed?

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