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Precise Case Analysis

Submitted by

Vinayak V Bhakta eMEP-10-069 Anil Kumar M S ePGP-03-099 Nitin Mishra eMEP-10-051

Introduction

Precise is a B2B software firm which conducted business with clients and helped those
firms manage their software performance.
Located in Westwood, Massachusetts, Precise developed software that helped its clients to monitor, evaluate the performance of their information technology (IT) systems. Precise software solutions upper management included Shimon Alon- President and CEO, CFO Ben Nye, General Manager Steve Campbell, and Aki Ratner, VP of Research & Development. Key Questions to Answer

Should Alon plan on introducing Insight at Openworld 2000? Why or Why not?
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 salesforce? How should Insight be priced? Develop an ROI model for Precise/SQL product.

Should Insights be introduced in Openworld 2000? Analysis & Recommendations Based upon the survey on Feb 1999, most respondents indicated that end to end system response time was critical for their systems effectiveness. There was no product available in market which provided the capability of an end to end performance management. If precise could build a product, they would clearly have the first movers advantage over other competitors and help Alon realize his dream of becoming $100 million company. But exec management was concerned if full functionalities were even possible by September 2000. Also a full blown product would take almost 2 years which would make it ready for Openworld 2001 instead of 2000. Considering the above facts our recommendations is that this product should not be introduced in the Openworld 2000 due to the following key reasons. Precise has a brand of delivering quality products in the market which may be risked if they go with a crude version. Only monitoring functionality possible by OpenWorld 2000 which may not service client needs who are looking for complete package. Introduction of the crude version might limit the price which the full version can command Give a cue in 2000 may enable competitors to come up with a better product in 2001.

What should precise sale strategy be for insight? Analysis & Recommendations For Precise the three most common channels for distributing commercial software applications were direct sales, value-added resellers (VARs) and systems integrators. The sale of large software systems tended to take a long time from initial contact to closing. On average, such systems took six to 12 months to sell with great deal of variance. More complicated and expensive systems could take over a year to sell while simple packages could be sold in a single meeting or phone call. Also sales was difficult because the softwares benefits were fairly complicated and difficult to explain and decision-makers were fairly concentrated in the organization. We recommend the following Sales strategy for Insights Use the same salesforce for insights as used for others. Current salesforce having expertise in all of companys products will help selling insight Extensive training may be required for the sales force specific for this new product to incite end to end performance product perspective than siloed approach. Current salesforce may help leverage existing relationship with clients and enable quicker sales.

How should Insight be priced? Analysis & Recommendations

Pricing Strategy Based upon the learning's from Precises previous products and value it brings to the table for clients, we would recommend value based pricing approach recommended for Insight. Since Precise is predominantly in the performance management business the value provided would always be high and so would be the pricing This findings is based upon the fact the ROIs which was provided by Precise/SQL to the clients.

The ROIs for Precise/SQL have been calculated and attached as follows:-

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