Growth Sustainable Business Plan Business Plan
- Length: 7 pages
- Sources: 6
- Subject: Business
- Type: Business Plan
- Paper: #33681409
Excerpt from Business Plan :
Growth Sustainable Business Plan
Proposed New Business
Intellectual property rights (IPR)
Resources Required for the Plan
Cash Flow Forecast
Plan for obtaining resources
Type of organization and the Management Information Systems
Vision for the Business Idea
Growth Sustainable Business Plan
Systemic Software Technology is an organization established in 1998 dedicated in designing, and marketing of software products. Since the formation of the company, the organization has enjoyed significant growth. With the rapid development of Information Technology (IT), the company has enjoyed increase in demand for the software products from virtually all sectors in the United States and outside the United States. Since 1990s, the company has designed and marketed several software products ranging from the accounting software to the human resources software for the organizational efficiencies. Bulk of the software products that the organization has designed and distributed are being used for business solutions. Some of the products that the organization has successfully designed and distributed are the Systemic DataPro, Systemic 3D Graphics, Systemic BusinessPro, Systemic Killer Pro, Systemic GPRS, Systemic ERP, Systemic OpenGL, Systemic AcctTrack, Systemic Financial and other accounting and business software. Typically, the organization has sold over 200,000 units of software products, and the company sells its products through several distribution channels such as computer retail shops, mail order houses and other important retail channels.
1.1: Proposed New Business
Based on the success that System Software Technology has recorded over the years, the organization decides to launch new innovative software to the market that will serve multiple functions for the small and medium business organizations. The proposed software is Systemic Financial88 ERP. The new software will be unique in the market and will be used for multiple purposes. The proposed product will serve functions such as:
Enterprise resource planning (ERP)
On-Line Transaction Processing)
Business Intelligence Solution
Company Inventory Solution
The new product will be an innovative product because it will combine multiple functions for business solutions. The new product is unique because many of the software packages in the market only combine two or three of the features listed above, and they are incapable of providing comprehensive multiple business solutions. Based on the unique importance of the new product, it is critical to implement appropriate intellectual property rights (IPR) to protect the business idea.
1.2: Intellectual property rights (IPR)
Intellectual property protection is very critical for the protection of business innovation. The IPR is very essential to make Systemic Software Technology reaping the full benefits of its business idea. In the contemporary business environment, counterfeiting, piracy, and theft of another person intellectual property have become a serious threat. To protect the new business innovation from counterfeiting, and theft, Systemic Software Technology will protect the new business idea by securing the U.S. patent right. The organization will obtain intellectual property right from the U.S. Patent and Trademark Office (USPTO). Since the organization is likely to export the new software product abroad, Systemic Software Technology will also secure protection for the new product in the foreign markets.
2: Target Customers
With rapid development of Information Technology (IT), small, medium, and large enterprises are continuously demanding for software package for business solutions leading to the growing demand for the business software package. Moreover, many individuals are continuously demanding for the software package to be used for personal purpose. The target customer will include millions of people in the country. Large number of these people could be found in the home offices and the small offices scattered around the country. Estimation has revealed that market for business software has reached more than $4 billion and it is projected that there would be 20% increase in the market annually.
2.1: Market Segmentation
The target market will be small businesses and home offices. In the United States, small offices and home offices are among the fastest growing markets, and the most important market will be smart, well-educated and self-reliant young people in a business setting who require business software package to achieve their business tasks such as strategic business planning, Enterprises Resources Planning, intelligent business forecast. Additionally, the target market will focus on the business schools, which will be using the new products for teaching. (Hannon, & Atherton, 1998).
More importantly, Systemic Software Technology will focus on small business since it is estimated that there are approximately 10 million small businesses in the United States. The organization will also focus on B2B and B2C as sources of market for the product. The organization will focus on the higher education such as universities, colleges, and junior colleges since these institutions may need the new product for teaching purpose. (Cook Belliveau, & Lentz.2007, Hormozi, Sutton, McMinn, et al. 2002).
To attract potential customer, Systemic Software Technology will design a Unique Selling Proposition (USP) for the product. The company USP for the new product will be as follows:
Solve your multiple business problems with Systemic Financial88 ERP.
We deliver the best business software solution.
Your business solution is at your fingertip with Financial888 ERP.
Systemic Software Technology will ensure that the new product meets customer need by designing the proposed software to address various business problems. To understand the customer needs, the organization conducts both primary and secondary research, and from the secondary research, it is revealed that many businesses require ERP, Accounting and Financial software and Online Transaction Processing to speed productivity. Malhotra and Temponi (2010) argue that many small businesses are facing significant challenges due to the excessive costs in accessing vast market potential. Thus, ERP has been identified as essential tool to assist businesses to compete globally and ERP has been very effective in supply chain management. Chau (1995) also points out that many businesses face challenges such as technical, financial and human resources in their business processes. Thus, businesses require software package to address these challenges as well as meeting organizational needs. (Harrison, Thompson, Flanagan et al1994). "Business Owners tend to take a more strategic view of software package selection, weigh technical factors more heavily, take more factors into consideration." (P 71). Thus, major software package that could be tailored for the organizational needs include ERP, Data Warehouse, Online Transaction Processing, Business Intelligence Solution and Accounting functions software. (Chau, 1995).
Apart from the secondary research, Systemic Software Technology also conducts primary research. The organization collects data from various business owners and managers of small and medium organization. The method of data collection is through survey and there are 20 participants. The aim of the survey is to understand the extent the new product meets customer's needs. The findings of the primary research reveal that more than 80% of participants agree that ERP, Data Warehouse, Online Transaction Processing, Business Intelligence Software are the major software package that their organizations used for business needs. Additionally, 67% of participants agree that Accounting software, and Company Inventory Solution software are the major software package the organization use for business needs. Based on the findings of primary and secondary research, it is revealed that new product will meet the needs of the target market.
There is stiff competition in the software business, and despite the stiff competitions identified in the software business, there is a room for new products. In the software business, brand is the most important aspect that enhances software market advantages. The main competitors are as follow:
Malcom Corporation is a manufacturer of software product. The revenue for the company has reached $300 million, and the growth rate is 33%. The other competitor is Arrog International, which specializes in the manufacturing of management software and several other leading products. The company growth rate is 27%, and the company total revenue reaches approximately $267 million. The other competitor include Litmus Development Corporation with revenues are $395 million. The company growth rate is 39%. In the United States, the total market for the software product is approximately $3.8 billion and its growth rate is 20% per year.
Despite the intense competition facing the Systemic Software Technology, the company will use differentiation to achieve market advantage, and the technique will assist the company to penetrate the market and enjoy the market share. The company will use combination of quality and quantity to differentiate itself. Quality, in the sense that the new product will be designed to enhance business efficiencies as well boosting productivity. Quantity in the sense that the new product will provide multiple functions that no company in the market has ever produced. (Hormozi, Sutton, McMinn, et al. 2002). With this business strategy, the company will enjoy high market share.
4: Skills analysis
To be successful in the software business, an organization must have team of skilled employee who should posses the programming, innovative and analytical skills to develop the new products for the market needs. Systemic Software Technology has team of human resources with IT and programming skills to develop new software products tailored to the organizational needs. With rapid development of Information Technology in the contemporary business…