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Precise Software Solutions Case Study

Precise Insight should not be introduced at Oracle Openworld 2000 as the product may not be ready, testing could be compromised if launched early, and it could damage PSS's reputation if expectations are not met. PSS should use a separate sales force for Insight as the existing sales force mainly sells to DBAs and had difficulty selling more extensive products to managers. Precise SQL provides value to clients through database monitoring and analysis functionality, which saves DBA time and improves end user response times. An ROI model estimates over $737k in annual savings and nearly 500% ROI for Precise SQL customers. The product helps DBAs prove database performance issues are not to blame for application complaints. Insight should be priced based

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Krishnaprasad Chenniyangirinathan
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238 views3 pages

Precise Software Solutions Case Study

Precise Insight should not be introduced at Oracle Openworld 2000 as the product may not be ready, testing could be compromised if launched early, and it could damage PSS's reputation if expectations are not met. PSS should use a separate sales force for Insight as the existing sales force mainly sells to DBAs and had difficulty selling more extensive products to managers. Precise SQL provides value to clients through database monitoring and analysis functionality, which saves DBA time and improves end user response times. An ROI model estimates over $737k in annual savings and nearly 500% ROI for Precise SQL customers. The product helps DBAs prove database performance issues are not to blame for application complaints. Insight should be priced based

Uploaded by

Krishnaprasad Chenniyangirinathan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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1. Should Alon plan on introducing Insight at Oracle Openworld 2000? Why or Why not?

What
business outcomes he intend to attain with Precise Insight?
Alon should not be planning to introduce Insight at Oracle Openworld 2000. The reasons for my
suggestions are
● The product seemed to be a finished one according to his team within Openworld 2000.
● The reputation of PSS could go bad if it cannot match the expectations it has created.
● The testing phases of the product can get compromised if it fastracks itself to launch early.
● The pricing may get affected if the product is planned to launch which in turn makes it
difficult in the future to increase it to Alon’s price.
● It gives competitors an idea of what PSS is heading to and help them imitate it much easier.
● It may also affect the sales of other products of PSS meanwhile with a bad effect on the brand
image.

2. What should Precise strategy be for insight? Should they launch a separate sale force for the new
product or sell it through their existing sales force? How good is their current sales force?

● PSS should have a separate sales force for insight. The existing sales force sells it to DBAs
mainly and also they found it difficult to sell it to managers.
● The Insight would be a very extensive product which would require a high technical
knowledge to answer the queries of potential customers.
● A new team can be formed with some sales force performing well in the existing sales team
for other products.
● The Insight product is a high ticket value item that the decision makers of the potential
customers would be mostly from the board of directors.
● The current team would find it difficult to achieve successfully selling it to larger
corporations.
3. What value is Precise SQL delivering to its clients? Develop an ROI model for Precise SQL
product.
Precise SQL delivers its clients the full functionality from Monitoring to Analysing. But it mainly
targets the DBA.
Savings from DBA
DBA Work hours per week 40
Total Work hours per year (40 x 52) 2080
Average DBA Salary $60,000.00
Average DBA hours saved in a week 9.4
Average DBA hours saved in a year (52 weeks) 488.8
Savings per DBA in a year $14,100.00
Average No. of DBA 10
Total Savings from DBA $141,000.00
User Savings
Average End User Salary $30,000.00
Average Employee BurdenRate 33%
Improvement in end user reponse time per
transaction 25%
Savings per end user $2,475.00
Simeltaneous end users 215
Total Savings from end user $532,125.00
Hardware Cost Savings
Average Annual Hardware Budget affected by
purchase of Precise/SQL $1,430,000.00
Effect on Hardware Cost if postponing for one
year at 30% $429,000.00
Probability of postponing hardware purchase by 3
months 60%
Hardware Cost Savings $64,350.00

Total Savings $737,475.00

No. of DBA Installations 10


Average Price of the product $20,000.00
Discount 25%
Total Revenue $150,000.00
ROI 491.65%

4. Which value element of Precise SQL is making it attractive for DBA's in organisation?

● The Precise SQL helped the DBA to monitor and improve the performance of the database
and also had a significant impact on the performance of the applications as well.
● Complaints about system performances used to arice and Precise SQL gave data to DBAs
proof that it wasn’t database was to be blamed.

5. How should Precise Insight be priced?


The pricing of Precise Insight should be done based on the benefits it can bring to the business of its
customers.

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