hands 1 strategies for hands exploitation tommaso ricci, eunics s.p.a. hands workshop h elping an...
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1
HANDS
Strategies for HANDS exploitation
Tommaso Ricci, Eunics S.p.A.
HANDS Workshop
HELPING
ANSWERS
DECISION
SERVICE
Bologna, June 29, 2007
2 Workshop Bologna – June 29, 2007
Table of Contents
1. Main issues for HANDS dissemination
2. Marketing Analysis– HANDS positioning– Business Model– Offer Definition – EU Market Evaluation
3. Deployment plan
4. Conclusions
3 Workshop Bologna – June 29, 2007
1) Main issues for HANDS dissemination
Q:What is the business value of the HANDS project? Q: How to deliver HANDS for the first three years after
the end of the project? Q: Who will distribute and use HANDS? Q: What results/benefits are expected in short, medium
and long term?
The Business Model and Deployment Plan
4 Workshop Bologna – June 29, 2007
Table of Contents
1. Main issues for HANDS exploitation
2. Marketing Analysis– HANDS positioning– Business Model– Offer Definition – EU Market Evaluation
3. Deployment plan
4. Conclusions
5 Workshop Bologna – June 29, 2007
STARTING POINTS
The HANDS Consortium has endorsed the strategic decision to make the HANDS software freely available, under general Open Source conditions.
Anyway, there are a number of ways in which commercial services can add value to it and constitute a return of investments for Hands Partners.
Therefore, a detailed set of professional services and a corresponding price-list has been defined in the Hands Product catalogue
6 Workshop Bologna – June 29, 2007
MARKETING ANALYSIS
Marketing analysis includes :– Target Market definition – Hands vs Competitors positioning– Offer definition, including services and related price-
list– Emphasis on how services have to be deployed
(Business Process)– and how to position HANDS on the EU market
7 Workshop Bologna – June 29, 2007
MARKETING ANALYSIS Target Market
Initially, our main target groups will be EU Public Administrations and Utilities, because:
PB are confident in OSS HANDS, as an OSS application, has no market
competitors, in this sector Leverage Experience and Best Practice related
to PBs application domains European presence
8 Workshop Bologna – June 29, 2007
HANDS POSITIONINGvs COMPETITORS
HANDS characteristics put our proposal in a unique position:– NLP technology-based– eGov/eDemo service– Open Source
10 Workshop Bologna – June 29, 2007
Business Process
HANDS defined two Business Processes; three main actors are involved in the HANDS service delivery:
– Commercial partner(s): supplier(s) for HANDS (technology and service providers).
– Public Bodies: Public Authorities or Utilities, who will Purchase HANDS service to Commercial partners.
– Final Users: The real users of the service, who will use HANDS provided by Public Bodies.
Professional Services will be provided as part of Business Process #1.
The main assumption for Business Process #2 is that services provided by PBs to citizens/customers are free of charge.
11 Workshop Bologna – June 29, 2007
THE BUSINESS MODEL
Commercial Partners will provide:– HANDS SW free distribution– A set of related Professional Services– Service Hosting, as ASP
Distributors :– Country Partner– Sales Partner
12 Workshop Bologna – June 29, 2007
Professional Services (on site / remote):– Installation on PB’s site– Maintenance (help desk, bug fix, SW upgrade)
through Web, Email, phone, ... – Training activities – Consultancy
Offer Definition:SERVICES CATALOGUE
13 Workshop Bologna – June 29, 2007
Offer Definition ASP services
ASP SERVICES (formerly HOSTING) are addressed to those PBs with no ICT infrastructure or requiring a Test Plant; the service fee has been separated into two different voices:
A start-up fee (only for the first year), to install HANDS in commercial partners’ data centre and configuring with logo, fonts and colours of the customers (light customisation).
A yearly fee (including the first one), to guarantee the HANDS availability. It includes also the access to a technical and methodology course, the online support (help-desk, mail system, web forms, etc.), the backup activities for customer’s database, etc.
14 Workshop Bologna – June 29, 2007
A BUNDLE is a common set of services from the Catalogue, that fits, at best, different customers’ needs
BASIC BUNDLE– Remote Installation – Distance learning ICT Training– Distance learning Methodology Training– Maintenance (help-desk, bug fixing, etc.)
PREMIUM BUNDLE: As Basic plus 6 days for on-site activities (customisation, onsite courses, etc)
SUPERIOR BUNDLE: As Basic plus 15 days for on-site activities (customisation, onsite courses, etc)
Offer Definition: BUNDLES
15 Workshop Bologna – June 29, 2007
Catalogue of Professional Services
ASP services
Includes
Basic B
undle
Bundles
•Superior/Advanced Superior•Premium/ Advanced Premium•Advanced•Basic
OFFER DEFINITION
•Superior•Premium•Basic
Basis for Bundle
16 Workshop Bologna – June 29, 2007
EU MARKET Evaluation
•PB’s Market Segmentation•A questionnaire sent by the HANDS Consortium reported:
• WHAT??????•Results from questionnaires have been used to validate the Sales Funnels
•Pilot Testing Sessions performed directly by some PBs reported:•useful feedbacks in terms of HANDS usability and benefits for final users
•Analisys of a sample of Italian utilities; it showed that:•Prospective customers should already have a proper knowledge base•“Big Utilities” IS the market for HANDS•The ASP product IS the product to be promoted
19 Workshop Bologna – June 29, 2007
EU Market Evaluation
Market segmentation of Public Administrations and Utilities has been identified from:– market data sources for PAs in Germay, Italy and
UK– market data sources for Multi-Utilities (Electricity,
gas and water supply) by EUROSTAT (updated to Feb 2007)
20 Workshop Bologna – June 29, 2007
Market Segmentation
Market Segmentation activity has been made to define a relation between the Public Administrations/Utilities dimensions and HANDS offer. The results are quite similar for Italy and Germany, both for PAs and for Utilities, in terms of absolute and relative numbers, whereas the results are very different for UK.
– About PAs: Germany and Italy have a large number of small and medium
PAs, a small number of big and metropolitan PAs. UK has a large number of big and metropolitan PAs, and small
number of small and medium PAs.– About Multi-Utilities:
Germany and Italy have a large number of small and medium utilities, a small number of big utilities.
In United Kingdom the number of Utilities is almost 10 times lower than in other 2 countries. The analysis showed that in UK there are few Utilities, but with high revenues.
21 Workshop Bologna – June 29, 2007
MKGT PLAN - Questionnaire
To support the MKGT analysis HANDS consortium decided to prepare and distribute a specific questionnaire addressed to other Public Administrations
. HANDS’ partners sent about 200 questionnaires and received 62
answers. This is a very good result considering the type of communication (a questionnaire via e-mail, no phone calls or personal contacts), the limited informative material, …
Most interesting results to be considered are:– The number of PAs which have already installed an NLP tools is 8
above 62 (13%) and inside these, 7 PAs (87%) are fully satisfied.– 54 PAs (87%) have already planned investments to improve citizens
and customers relations and 45 of them (83%) have planned investments in the next two years.
– Finally and most important, 49 PAs above 62 (79%) confirmed that HANDS could support their investment strategy; an additional 16 asked for more detailed information.
22 Workshop Bologna – June 29, 2007
Table of Contents
1. Main issues for HANDS exploitation
2. Marketing Analysis– HANDS positioning– Business Model– Offer Definition – EU Market Evaluation
3. Deployment plan
4. Conclusions
23 Workshop Bologna – June 29, 2007
3) DEPLOYMENT PLAN
1. HANDS Group definition– Hands Partner– Distributors – Partnership Program– Web Site
2. Marketing Strategy for 1-3 years
3. Financial Plan
4. Future Development Plan
5. Promotional Plan
24 Workshop Bologna – June 29, 2007
Hands Group : some definitions
HANDS Group: the proposed federated network, created by the HANDS Project Partners after the end of the HANDS Project, in charge of disseminating HANDS around Europe
HANDS Distributors: Country Partner/Sales Partner HANDS Customers: the Public Bodies who will request HANDS
Professional Services to Commercial Partners.
HANDS Enhancements: the new software to be developed for future extensions and increase HANDS Features. These enhancements could be developed by any Partner and will be returned free-of-charge to HANDS Group.
25 Workshop Bologna – June 29, 2007
HANDS GROUP:Distributors
There are various distributors’ roles: disseminating HANDS, selling the HANDS professional services, supporting customers, etc.
To support the different levels of participation they are able to perform, the following two partnership programs will be proposed:
Country Partners: companies who want to forge a strategic and unique relationship with Commercial partners to disseminate HANDS and to deliver HANDS professional services in their countries or regions. This level of partners will be able to manage other distributors or developers at country level.
Sales Partners: companies who will only disseminate HANDS and sell HANDS professional services and products, to be delivered by Commercial partners or by other Country Partners.
Companies who want access to a specific program need to be certified, following training courses and demonstrating their ability in supporting and managing Public Administrations and Multi-Utilities as customers.
26 Workshop Bologna – June 29, 2007
The HANDS Group will be finalized as a Community of Best practices and Developers
A “deployment agreement” will be signed by HANDS Group Community in order to identify simple rules for managing the overall activity
Professional Services will be delivered mainly by Regulus/EUNICS or by Distributors in their countries
Each distributor will fix its prices and SLA of the services, together with Regulus/EUNICS, according to country and market values; a “distributor agreement” will be signed to support the business in Europe
Expert Partners (e.g. Eurocities, Napier, HANDS Pilot Partner) will support the HANDS dissemination and future Enhancement
The Deployment PlanHANDS GROUP
27 Workshop Bologna – June 29, 2007
CommercialPartners
Regulus
Eunics
ExpertPartners
Eurocities
Napier
Pilot Partners
Bologna
Edinburgh
Enìa
Saarbruecken
HANDSGroupDeployment
Agreement TechnicalEnhancers
Distributors
NewCustomers
HANDSGroup
THE HANDS GROUP
28 Workshop Bologna – June 29, 2007
Hands Group
The HANDS Group will act as a “Community” and allow people to collaborate and share information
– The Website will allow: Demonstrations, HANDS SW download, request for professional services, trouble notifications, technical support, etc
– HANDS Group will be a “Sharing Community” where not only the software will be shared, but also PBs experiences and databases will be made available.
– HANDS Group will be a “Qualified Community” because each subscriber will have to share or “to add value” for the community in terms of: software, databases, best practice, knowledge, etc.
– Commercial Partners will administer and supervise the Community contributions on the web
29 Workshop Bologna – June 29, 2007
HANDS endorses the actions suggested by the EC in order to deliver usable and sustainable e-services for citizen.
The HANDS goals are:to respond positively to citizen and customer demand for more usable servicesto extend accessibility of services through more support and help on websitesto provide accessible information in response to enquiriesto reduce ICT costs by using OSS and already prepared documentationto provide services ready to be used anytime and anywhere on different delivery channels
THE BUSINESS MODEL Proposition:EU Market Evaluation
30 Workshop Bologna – June 29, 2007
Based on Market Segmentation, Questionnaire results, Pilot Evaluation,…
HANDS adopted a 1-3 year Strategy for selling Hands Services in some European Countries
THE BUSINESS MODEL Proposition:EU Market Evaluation
31 Workshop Bologna – June 29, 2007
Marketing Strategy for Years 1-3
Target Markets Characteristics Priorities
Year 1 Germany High volume Customers
High expected penetration
Language ready
Identify Country Partner to develop and implement Strategic Sales Plan.
Italy High volume Customers
High expected penetration
Language ready
Managed directly by the present HANDS commercial Partners.
UK Important market but low volume of Customers
Very low penetration expected
Language ready
Market not planned at present.
Inspect the possibility to develop Strategic Marketing and Sales Plan to be implemented in subsequent years.
Year 2 Austria
Interesting volume Customers
Medium expected penetration
Language ready, to be tuned
Managed directly by the present HANDS commercial Partners.
Ireland Low volume Customers
No expected penetration
English language ready, Gaelic tbp
Market not planned at present.
Inspect the possibility to develop Strategic Marketing and Sales Plan following the UK market plan.
32 Workshop Bologna – June 29, 2007
Marketing Strategy for Years 1-3
Year 3 France High volume Customers
High expected penetration
Language to be developed
Identify a Sales Partner in France.
Technical services provided directly by the present HANDS commercial Partner. Managed directly by the present HANDS commercial Partner
Belgium Interesting volume Customers
Low expected penetration
Flemish to be completed
Market not planned at present.
Inspect the possibility to develop Strategic Marketing and Sales Plan following the France market plan.
The Netherlands Interesting volume Customers
Low expected penetration
Dutch to be developed
Market not planned at present.
Inspect the possibility to develop Strategic Marketing and Sales Plan following the France market plan.
33 Workshop Bologna – June 29, 2007
SALES FUNNEL
Discovering
Qualifying
50%
Evaluating
25%
Ordering50%
Recurring Customers
Communicating33%
HANDS50%
Offering BusinessProducts
0
50
100
150
200
250
Pessimistic Realistic Optimistic
First Year
Second Year
Third Year
34 Workshop Bologna – June 29, 2007
Indicative Financial Plan
Based on Marketing Strategies,a Service Catalogue and Price-List and a Sales Funnel, HANDS has developed a Financial Plan
A Break Even analysis table shows that HANDS partners will reach the break even point within the third year
Also the Country Partner in Germany, will be able to reach a positive result starting from the first year of activity.
Also the Sales Partner in France, will be able to reach a positive result starting from the first year of activity.
35 Workshop Bologna – June 29, 2007
HANDS - BUSINESS FIGURESCOMMERCIAL PARTNERS
Break-Even Analysis
-€ 600.000,00-€ 500.000,00-€ 400.000,00
-€ 300.000,00-€ 200.000,00-€ 100.000,00
€ 0,00€ 100.000,00
€ 200.000,00€ 300.000,00€ 400.000,00
First Year SecondYear
Third Year Fourth Year Balance
Cash Flow
-€ 150.000,00
-€ 100.000,00
-€ 50.000,00
€ 0,00
€ 50.000,00
€ 100.000,00
€ 150.000,00
€ 200.000,00
€ 250.000,00
€ 300.000,00
€ 350.000,00
First Year Second Year Third Year
Cash Flow
Profit & Loss
-€ 200.000,00
-€ 100.000,00
€ 0,00
€ 100.000,00
€ 200.000,00
€ 300.000,00
€ 400.000,00
€ 500.000,00
First Year Second Year Third Year
Pessimistic
Realistic
Optimistic
36 Workshop Bologna – June 29, 2007
Future Development Plan
New Features will increase and extend the HANDS value proposition; e.g.:
Adding new domains and creating sets of base documents;
Adding new languages; Adding new delivery channels (mobile phones pages,
digital television, etc.); Extending functionalities according to PBs requests; Creating sales-marketing toolkits; and sharing everything in the HANDS group
37 Workshop Bologna – June 29, 2007
Promotional Plan
Communication efforts and campaign strategies, for the first year, will be focused mainly on promoting HANDS, selling Professional Services and identifing new Distributors.
the logo, name and message (“Questions in your minds, answers in your HANDS”) will be copyrighted
HANDS White Paper will be used outside of the consortium for promotional activities
The HANDS Group web site will be the main asset for marketing strategy, together with the help of Pilot Partners in disseminating their success stories. As soon as the web site is online, Regulus will register HANDS in all web sites for Open Source databases and repositories;
Fairs, conferences, congresses etc. will be used to increase HANDS knowledge and sales.
Additional Distributors for European countries will be selected.
38 Workshop Bologna – June 29, 2007
Table of Contents
1. Main issues for HANDS exploitation
2. Marketing Analysis– HANDS positioning– Business Model– Offer Definition – EU Market Evaluation
3. Deployment plan
4. Conclusions
39 Workshop Bologna – June 29, 2007
Conclusions
The aim of the project was to perform a market validation process to investigate the administrative and economic viability of the “HANDS service” product. Also to identify the conditions for its future deployment on a European scale.
HANDS potentially met the objective by:
assuming the strategic decision of adopting Open Source Software model in the Public Body sector,
Defining the HANDS Group as the main actor of HANDS deployment, Identifying the Hands Community organizational plan, Defining the Hands Business model and process, Defining a corresponding Deployment plan and Promotional Plan, Establishing a 3 year - Market Strategy for Hands dissemination and deployment in Europe, Defining New features which will increase and extend the HANDS value proposition.
The Financial Plan shows a positive business development, with a Break Even point foreseen for Commercial Partners within the next 3 years.
Depending on the market evolution, the strategy will be continuously adapted to face the new challenges
40 Workshop Bologna – June 29, 2007
Demonstration
Would you like to see our PROJECT at work?
PLEASE MEET OUR EXPERTS AT THE LIVE DEMONSTRATION DESK