Precise Software Solutions: Group No:-6

PRECISE SOFTWARE
SOLUTIONS
GROUP NO :- 6
CASE FACTS
Precise is developing performance management and availability software
serving firms.
PRODUCT PORTFOLIO
Precise/SQL: Software product managing the performance of applications
utilizing Oracledatabase: targeted at users of proprietary applications
Inter point: Software product monitoring the database efficiency of large
Enterprise ResourcePlanning applications
Precise/Pulse: Software product continuously monitoring the underlying
database.
Precise/Presto: For monitoring the performance of EMC storage products:
Sold on an OEM basis by EMC
PRODUCT TYPES
The market is fragmented and the products were differentiated in two
ways:
Based on the underlying resources and platforms with which they were
associated2.
Based on the functionality they offered.

Monitoring
Detection
Improvement
Analysis
CHANNEL STRATEGY
Direct Sales2.
Indirect Sales (Value-added resellers, System integrators and
Original equipment manufacturing agreements
SALES CYCLE :- ( 6 to 12 months)
THE INSIGHT OPPORTUNITY

PRODUCT :- End-to-end performance management product.
Important indicator of systems effectiveness: end-to-end
response time
POSITIONING :- Precise should be positioned as a provider of
enterprise performance solutions, not just products.
This enables them to become an end-toend infrastructure company not a database company
PRICING
Pricing structure: one-time license fee + recurring revenue from
annual maintenance and service contracts and additional revenues
from product upgrade ( 15% to 20% of one time licensing fee)
Additional revenue from existing customers was also available via
product upgrades and cross selling other products
MARKET DYNAMICS
Large Market
No Current Direct Competitor
Substantial Value Proposition (also it would allow precise to diversify

its customer base )
First mover advantage
EXISTING PAINPOINTS
No products including Precises products focused on the overall
performance and the reasons for underperformance
specific source of problem was not possible to be identified
Resulted in the phenomenon BLAMESTORMING
Slow end to end response times were often undetected and when
detected went unaddressed
Q1) Should Alon plan on

introducing Insight at Open
world 2000? Why or Why not?
WHY YES ?
First mover advantage : As of 1999, none of the companies offered end to end solutions , so by
moving quickly and being first to market , precise could establish itself as
the market leader.
Easy to sell it was thought that it would be very easy to sell it since it was easier to
make the benefits of product tangible and understandable
As,
Investment in erp was high so no scope of errors and fallbacks expected

Applications were data intensive
RIGHT PLACE , RIGHT TIME

annual conference gathered together thousands of interested and
motivated prospects, who could hear about and see demonstrations
of new product.
This meant a good marketing platform for the new product with least
expense in terms of cost and time and maximum impact.
WHY NOT
REPUTATION AT RISK
Going to market too early with a product with not enough
functionality will damage the reputation of the product and might
not be attractive in terms of value to the customers.
THREAT OF COMPETITORS
Also, going too early with an immature product will allow
competitors to come up with better alternative solutions and snatch
the chances from Precise to be a leader in the industry.
WHY NO ?
LIMITED FUNCTIONALITY
The product if developed targeting Open World could only have the
monitor functionality in the best case scenario, however the
complete analyze functionality would be missing and will be seen as
a gap.
LACK OF PREPARATION
The company is still not sure on how they will market the product
and how they will price this product
FINAL VERDICT
Introduction in OpenWorld2000 not recommended based on so it
isrecommended to wait for the OpenWorld2001 to release the
product
An immature product, with just monitor functionality and no nice
user interface, will be seen as a down product by customers. Since a
GA version could only be available in 18 months from now, and a fully
functionality only in 2 years, it will give time to competitors to see
and copy the product.
Q2) 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?
A direct selling approach should be used for this product.

Insight being a premium and complex product a well trained and
dedicated sales force will achieve better results.
Difficult to sell through system integrators and VARs.
It should be promoted and sold aggressively.
Sales force should be trained to provide effective end-to-end
performance management solutions.
They are recruited only to bring in clients for Insight.
Q3) How should Insight be

priced? Develop an ROI model
for Precise/SQL product.
THANK YOU !

Precise Software Solutions: Group No:-6

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PRECISE SOFTWARE

Based on the functionality they offered.

THE INSIGHT OPPORTUNITY

Substantial Value Proposition (also it would allow precise to diversify

Q1) Should Alon plan on

Investment in erp was high so no scope of errors and fallbacks expected

RIGHT PLACE , RIGHT TIME

Q2) What should precise strategy be

A direct selling approach should be used for this product.

Q3) How should Insight be

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