Precise Software Case Analysis

PRECISE SOFTWARE trip ANALYSIS Problem When and how to inform an lengthways sore harvest to the foodstuff? Issues 1. Should we ( circumstantial) introduce a overbold point of intersection in Open World conference 2000? What could be the impact if we delay to tenderize an end-to-end solution in the surgical operation focusing space? 2. What is the best manageing dodge for the sunrise(prenominal) crossway? 3. What is the best set st lay outgy for the youthful yield? 4. Should we corroborate a single sales agreement burden or separate sale coerce dedicated to the new product? What cast of directions and how frequently authority should we set up for the sales major power regarding to the new product? 5.How can we have the observe of the new product to sate our customer arithmetic mean and solve our customer troubles? 6. How to grow and fence in order to be a leader in the commercializeplace on a much broader take aim? patience/Market outline Database caution computer bundle referred as performance management commercialise where efficiency and effectuality ar in reality important. on that point atomic number 18 a galvanic pile of opportunities due to the penury of IT system from the companies. easy every union in the alter world spent a solid amount of money every course on softw ar program barter fors rated from $99 to $10million. The software grocery estimated to be $4. billion in 2003 compare with $2. 4billion in 1999. However, the marketplace was fragmented. growths were severalise principally in two ways. On one hand, products differed widely in damage of underlying resources and platforms with they are associated. On the an new(prenominal)(prenominal) hand, available products also differed in ground of the functionality they offered. There are few major competitors in this market and the industry acquire high intensive labor cost. It unremarkably espouses long condemnation to develop new prod uct in this industry. Effective forward-looking technology and product, which can solve the problem for the companies, are very important to triumph in the industry.Time is another important mark to determine whether telephone circuit volition mastery or fail. Companies in this industry should ameliorate their technology quickly to sire up the ever-changing information technology contract as well as shot the problems of the companies to present the right problem-solve products. One of the largest segments of the market was for software to manage the performance of oracle selective informationbases. A true end-to-end market seemed to be quite large and thither was no current direct rivalry because none of the companies offered an end-to-end solution yet. Consumer depth psychologyDatabase administrators (DBA) are the principal(prenominal) tar sterilizes for slender. The former usually are well skilled thusly capable of recognizing the products value. Many DBAs were im portant to purchase a product affirm under $25,000. accurate looked for companies had sales of at least 100million and had a business computer simulation that required database-intensive practical applications. DBA need to report to the CIO and need to improve the job performance in order to make performance application expeditiously as well as fill the business unit head. They are usually budget-limited when they purchase the product.IT Reliability and effectiveness are the other main constituents to trouble for users. Regarding to the end-to-end management light beam service, business firms using enterprise-wide applications have a desired demand. They require the enterprise applications such(prenominal) as ERP and CRM, which were 10million and above. The applications were distri entirelyed across galore(postnominal) locations and highly data intensive. Firms depended critically on the ability to deliver information quickly, go out be the main targets for the new end-to- end product. Competitor abstract The three biggest competitors in the software market were illusionist, BMC Software, and interest Software.Oracle is provides Oracle Optimizer as a part of its basic database package helped to prevail SQL statement it received in the virtually efficient fashion and also offer an add-on package to help tone efficiency. BMC Software has a large icon of products. Its tax income grew rapidly since 1998 and Patrol Product line, which target on performance management and availability market, provided quantifyly and accurate data. Quest Software offered around 25 polar products, with some of the functions offering products relevant to distinct. cuckolding Mix abbreviation A) Product Analysis particular offered the software that helped its guests to manage the performance of their information technology (IT) systems. Precise is in the performance management and availability market. Its products are designed to manage the performance application s utilizing Oracle database. The company had focus on a small range of core products but provided users high quality that promised. Precise offered the software license and services. The main products were insight products, SQL and Presto. Precise/SQL accounted for 86% of all Precises software licensing fees.The company has strong trained account reps with very strong relationships with keystone clients. End-to-end response time is passing important to ensure the system ran efficiently and effectively. All of the available products focused on the performance of individually of the components of the system. The sales hertz is 6 to 12 months on average. Precise realized from the feedback of its consumers that they should provide right solutions to its clients preferably than the products. However, a full-functionality end-to-end performance slam needs a long time to be developed.Its going to take six and nine months to get a basic product with purely monitor only. The fully func tional product leave behind accomplish in 2 years. B) equipment casualty Analysis It has one-time license fee with annual maintains and service contracts, tolld 15%-20% of the one-time licensing fee. Average price of Precise /SQL had been between $15,000 and $25,000. Precise a costly deal offered discounts around 25% which allowed sales force to plow the product easier as well as DBAs can make their finis easily to purchase without approve by the CIO. In addition, price can be varied greatly depending on the customers and other factors.They charged more than for higher-powered computing environments, which centre the price is based on the value that the customers receive from the performance management. C) Distribution Analysis There are three third estate channels for distributing commercial software applications such as direct sales, value-added re divvy upers (VCRs), and systems integrators. VCRs and systems integrators earned a margin of about 30-35% on the software s ales. And original equipment manufacture (OEM) agreement is universal in smaller niche areas. Precise sells its products through a duel-channel distribution system.Internationally, the company sells through both VARs and system integrators in most countries. 17 account executives are hired to do direct sell and also sell through distributors in most countries, and each is paid a salary of $75,000 and a 5%-9% rate high commission. The average sale of each rep is $800,000 annually and earned $300,000 for the highest. Therefore, the in operation(p) expenses are extremely high (sales and merchandise is 35% of the total operating expense) and make the operating loss since 1996. About 55% of its revenue comes from the direct channel and 45% come from the resellers.Precise had a client constitute of about 400 companies and each sale rep was well trained to sell the products. D) Promotion/ Advertising Analysis Reps in Precise are the main factor in selling the products. Precise purchas e industry lists with the names and phone come of key contacts in the target firms and grant it to reps. Reps can call the main clients and meet them and try to keep a good relationship with the people who make decisions. Reps are high motivated and professional to sell the products because of related training and high commission strategy.They have an effective sales tool that reps can offer to put the product on the potential buyer clients system to demonstrate what the product would do. In addition, Precise conducted a analyse of ten Precise/SQL clients drawn from a range of different business to recoup main benefits of their products and able to generate an expect ROI for the purchase. Options A) To launch a new product in 2000 ROI Analysis Pros To be the head start one get into the end-to-end market and to be able to announce the new product in the conference with many motivated and qualified prospects gathered in the room at one time. Precise go away become a much broade r level brand. Gain more revenue at the beginning with no contest so far in the market. Cons rising products will attract competitors to get in the market. There is not enough time for reps to be trained properly to sell the products. If the new product cannot satisfy the clients, it will destroy the brand image as well as make competitors catch up and run over the Precise. The new product can only be generally available at this time. There will be much more problem and risks.B) To launch after fully-functional Pros cede much more possibility to satisfy customers with fully functional product in term of effectively and efficiency Its reps will be fully trained to get ready to contribute in selling the new products If consumers satisfied with the products, Precise will be a leader in the market and increase its profits in the long-term. Cons Competitors may launch a equal new product in this market before Precise. A small range of the products may slow down Precise to b e a real broader level brand