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Assignment 6

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8 views4 pages

Assignment 6

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narlaanish7
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Assignment-6 C7- Precise Software Solutions

MUNAGANURI VENKAT NIKHIL PGPBL05018


1. Should Alon plan on introducing Insight at Openworld 2000? Why or Why not?
 The upcoming OpenWorld 2000 would be a treacherous place to unleash Insight and
for one do not recommend it - here is why:
 They predict that it would take the team 6–9 months to have a primitive monitoring-
only alpha version finished -> which means tracking betas and gaining feedback by
September 2000deadline, with almost no time left for alphas or betas Rest is
minimal and delays are not allowed because the timeline is very short.
 A "lightweight product" could result from our launching with only monitoring
functionality, and not the complete high quality experience that Precise has become
known for. So that this does not hurt the reputation of both, product and company.
 Going too fast may root enough time to test properly and risk of bugs could ruin
adoption rates even though it doesn't take long for a user to close/cancel an account
complained by users.
 The sales group needs time to transiton from selling low priced product, which may
not happen in the limited timeframe.
 Stronger 2001 Launch (waiting until OpenWorld 2001 would give Precise time to
complete a fuller product - including detection, and may be improvement/analysis
capabilities too) that were better aligned with how existed products.
 The competitive window that first-to-market presents is tempting, but not so much
as the downside if you move too quickly to hit OpenWorld 2000. Even in 2001, a
more complete product would have probably had better success at launch.

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?

The challenge for Precise: How to sell Insight without throwing the baby out with bathwater
—harnessing all that is good in their current sales force, while resolving what plagues it. An
optimal way to do this would be the process as follows:

Sales Force Insight Strategy

 Utilizes Sales Team you already have:

The existing sales team has deep relationships with DBAs and years of selling
database performance tools, which will be a key attribute when rolling out Insight to
the market.

 Focused Training and Help:

The current sales force will require a lot of training on the new product and how to
sell higher-level IT execs as Insight is at a much higher price point than what they are
really used too.
Add a few enterprise sales specialists: To fill the experience (greed) gap, Precise
should look to bring on a couple of seasoned spec ops soldiers that can help
guide/mentor teach band middle accord with others at larger Insight deals.

 Terminate Compensation and Incentives;

Commission structure modification: the commission earning needs to be defined in


such a way so that sales team would have impetus for Insight over current products.
This correction is crucial to give the team reason enough to sell a higher price and
complex product.

 Review the feasibility of dedicating a sales force:

As Insight sales ramp and the product is more mainstream, Precise should revisit if a
separate dedicated sales force makes sense. The stage at which support and training
will be of assistance to an existing team is cheaper but when looking for long-term
success you may have to look into having a dedicated team.

 Shoring up the deficiency within your sales force:

While the current team is strong in their relationships with DBAs and technical
selling, they have limited (or no) experience when it comes to being introduced / or
working directly at higher-level IT Management levels — which are necessary for
Insight sales.

Sales rep comp is sub-industry standard, and that may hamper ability to recruit good
enterprise sales talent. This will be something you want to address so they can do
their job and sell Insight well.

This measured approach enables Precise to leverage their existing sales team's
assets while making the required improvements needed for Insight to launch and
scale.

3. Develop an ROI model for Precise/SQL product?

Benefits:

 DBA productivity savings:

9.4 hours saved/week 52 weeks $60,000 salary / 2080 annual work hours = $14,123
per DBA

$14,123 * 10 DBAs = $141,230

 Hardware cost savings:

budget (3) = $1,430K savingsfc budget probability60% * 30%; then; tgt= $64.35K
($2M annualized ~ approx.)

 Boost end-user productivity

(215 users * 194,000 daily transactions )/ 215 users =902 transactions/user/day

902 *15 seconds / **25% improvement = 3,383 seconds saved/user/day


3,383 / 3600 =.94 hours saved/user/day

0.94 260 work days $30,000 salary / 2080 hours = $3,525 saved/user/year

$3,525 * 215 users = $757,875

Annual Benefits: $963,455 Total

 Costs:

Average Precise/SQL: $20,000 (midpoint of range between $15,000 and $25,000)

Annual maintenance(18% of license) $3,600

First Year Total $23,600

(First year)ROI ($963,455 - 23.6k)/$23.6k = 3,982 %

This is an over a two hundred percent ROI and may explain the success of
Precise/SQL, but also that pricing could be increased.

4. How should Precise Insight be priced?

An In-Depth but Succinct Look at the Precise Insight Pricing Plan

Proposed Pricing Tiers:

 Base version with only monitoring: $75,000 – $100,000

A price point that mirrors the product's wider appeal to more departments and entire
businesses, so early adopters can start using it while still communicating its value.

 Detection Capabilities Version: $150,000 – $200,000

The price goes up as we add advanced features such as e.g. detection, since you get so much
more value in a single solution which then also make the whole thing more complicated

 The Improvement & Analysis version: $250,000+ Full-featured Version

The premium tier, as one would expect for the $250,000 target price point does make sure to
cover everything legally-liable-party related in a single turnkey end-to-end solution with full
monitoring/detection/analytical capabilities.

Value-Based Pricing Base pricing on ROI models to make sure customers understand their
expected return.

Modular Approach: Initial customer setup is the base version with modules/expansions
added as a long-term revenue source based on scale and complexity of the customers.

Volume Discounts – offer discounts for multi-server or large scale deployments to promote
wider usage.

The tiered approach allows Precise to capture additional value as Insight grows in maturity,
yet still offers customers a predictable path for upgrades and pricing consistency throughout
the life of the product.

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