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ProSightProSight

Case StudyCase Study

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AgendaAgenda

The case study’s goalsThe case study’s goals IT Management & ProSightIT Management & ProSight

The productThe product The marketThe market The business modelThe business model

What have we learned ?What have we learned ? MistakesMistakes ProblemsProblems LessonsLessons

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The Case Study GoalsThe Case Study Goals

Collect personal insight from the executive teamCollect personal insight from the executive team Learn the process of “starting up”Learn the process of “starting up” Identify the milestones and turning pointsIdentify the milestones and turning points

Our Mission:Our Mission:

Learn from others’ mistakes - Learn from others’ mistakes - we can’t make them all ourselves.we can’t make them all ourselves.

To boldly go where no one has gone before …

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AgendaAgenda

The case study’s goalsThe case study’s goals

IT Management & ProSightIT Management & ProSight The productThe product The marketThe market The business modelThe business model

What have we learned ?What have we learned ? MistakesMistakes ProblemsProblems LessonsLessons

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ProSight’s Mission StatementProSight’s Mission Statement

To enable management teams to To enable management teams to choosechoose and and executeexecute an IT portfolio an IT portfolio strategystrategy that makes their business that makes their business

plans a plans a realityreality

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84% of IT projects are canceled or exceed 84% of IT projects are canceled or exceed planned budgetplanned budget

The ProblemThe Problem

What is Information Technology (IT) ?What is Information Technology (IT) ? Market of billions of DollarsMarket of billions of Dollars

The shoemaker’s children go barefootThe shoemaker’s children go barefoot CFOCFO has has ERP ERP VPVP MarketingMarketing has has CRMCRM VP SalesVP Sales has has SFA SFA CIO CIO has has ??????

(Standish Group)

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The Solution – eIT-EnablerThe Solution – eIT-Enabler

To enable management teams to To enable management teams to choosechoose and and executeexecute an IT an IT portfolio portfolio strategystrategy that makes their business plans a that makes their business plans a realityreality

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The Solution – eIT-EnablerThe Solution – eIT-Enabler

Investor map – Align IT with business strategy

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The Solution – eIT-EnablerThe Solution – eIT-Enabler

Score Card – Drive operational excellence

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IT ManagementIT Management

ITOrganization PM

CIO

Mid LevelManagement

Technical Staff – Programmers etc.Technical Staff – Programmers etc.

Other CIO’seIT Forum

CEO & Board

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Milestones(1)Milestones(1)

Jun 1998 Founded by Amir Ofer and Avrami Jun 1998 Founded by Amir Ofer and Avrami Tsur as a BRM initiative Tsur as a BRM initiative

Dec 1998 CEO recruitment Dec 1998 CEO recruitment

Relocation to the U.S.Relocation to the U.S.

Co-founder leftCo-founder left Nov 1999 eIT Forum – web community for IT Nov 1999 eIT Forum – web community for IT

ManagementManagement

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Milestones (2)Milestones (2)

Jan 2000 Finance round of $10.6 MillionJan 2000 Finance round of $10.6 Million Apr 2000 Beta sitesApr 2000 Beta sites Aug 2000 First costumers: Motorola and Aug 2000 First costumers: Motorola and

University of NebraskaUniversity of Nebraska Jan 2001 Finance round of $15.4 Million Jan 2001 Finance round of $15.4 Million

despite the recent NASDAQ crashdespite the recent NASDAQ crash

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Business Model (1)Business Model (1)

Estimated ITM market of $7 Billion annually Estimated ITM market of $7 Billion annually

(U.S.) (U.S.) (Standish Group)(Standish Group)

First To Market – leverage to market controlFirst To Market – leverage to market control

Target “Top 500” companies with extensive IT Target “Top 500” companies with extensive IT

expenditure expenditure

Positioning as the market leaderPositioning as the market leader

Real product for real moneyReal product for real money

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Business Model (2)Business Model (2)

Charge per licenseCharge per license

Professional services & MaintenanceProfessional services & Maintenance

Future - Knowledge brokerageFuture - Knowledge brokerage

Burning Rate estimated at $ 1Million monthlyBurning Rate estimated at $ 1Million monthly

Show prospective revenue Show prospective revenue NOWNOW

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ProSight CustomersProSight Customers

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Penetrating the MarketPenetrating the Market

Attain high powered customers as Attain high powered customers as referablereferable

accountsaccounts

Provide additional value to all levels of usersProvide additional value to all levels of users

Enabler – A platform you Enabler – A platform you can’t manage withoutcan’t manage without

Become the industry standard Become the industry standard

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ProSight CompetitorsProSight Competitors

ProSight’s advantagesProSight’s advantages

Focus on IT rather than general solutionFocus on IT rather than general solution Knowledge sharing & Professional ServicesKnowledge sharing & Professional Services

Multi-level solution: Portfolio and middle Multi-level solution: Portfolio and middle

managementmanagement Technology – Cross correlation between existing Technology – Cross correlation between existing

information resourcesinformation resources

In HouseSolutions

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AgendaAgenda

The case study’s goalsThe case study’s goals IT Management & ProSightIT Management & ProSight

The productThe product The marketThe market The business modelThe business model

What have we learned ?What have we learned ? MistakesMistakes ProblemsProblems LessonsLessons

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Problems & RisksProblems & Risks

Real value only inReal value only in largelarge scale deployments scale deployments

Product integration demandsProduct integration demands Shift in management behaviorShift in management behavior

Long training periodLong training period

Israeli based R&D – security hazardsIsraeli based R&D – security hazards Financing riskFinancing risk

Current market affairs: make $$$ - not promisesCurrent market affairs: make $$$ - not promises

sales will either “make them or break them”sales will either “make them or break them”

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MistakesMistakes

Initial design out of focusInitial design out of focus Executive team recruitmentExecutive team recruitment

Two VP’s left ProSightTwo VP’s left ProSight LateLate VP Sales recruitment VP Sales recruitment

Sales missed targeted marketSales missed targeted market Didn’t focus on strategic costumersDidn’t focus on strategic costumers

Wrong marketing target – focused on the CIOWrong marketing target – focused on the CIO Nice to have not have to haveNice to have not have to have

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Our LessonsOur Lessons

Design your product Design your product flexibleflexible and scalable and scalable Every plan is a base for changeEvery plan is a base for change

Navigate R&D with market requirementsNavigate R&D with market requirements Timing and Focus are crucialTiming and Focus are crucial

Hire experienced executive management Hire experienced executive management fastfast Make referenceable Make referenceable strategicstrategic clients clients Ego kaze katanEgo kaze katan

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AcknowledgementsAcknowledgements

ProSightProSight Amir Ofer Amir Ofer Co - founder and chief scientistCo - founder and chief scientist John Cimral John Cimral CEOCEO Doug Yokoyama Doug Yokoyama Product managerProduct manager Sue Reber Sue Reber VP MarketingVP Marketing Barbra Gaffney Barbra Gaffney VP Sales & strategic alliancesVP Sales & strategic alliances Ayelet SteinbergAyelet Steinberg AccountantAccountant Noa Sattat Noa Sattat QA Team leaderQA Team leader Ofir Oron Ofir Oron UI DesignerUI DesignerBRMBRM Yuval Rakavy Yuval Rakavy CTOCTO Ilan Stern Ilan Stern HR DirectorHR Director Johny Klahr Johny Klahr AdvisorAdvisorMiscellaneousMiscellaneous Izhar Shay Izhar Shay CEO of Business LayersCEO of Business Layers Yael Basher Yael Basher VP Product Development of BackWebVP Product Development of BackWeb Allison Haines Allison Haines Analyst, Gartner GroupAnalyst, Gartner Group Avarmi Tsur Avarmi Tsur Co founder of ProSightCo founder of ProSight

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Thank YouThank YouGedon RosnerGedon Rosner

David RabinowitzDavid RabinowitzLeonid BakmanLeonid BakmanIlana MushinskyIlana Mushinsky

Sabina GertzSabina GertzEran GolanEran Golan